To Bring About an Increase in the Share of GDP

question 95

Multiple Choice

To bring about an increase in the share of GDP available for nongovernment use,

• A)there will have to be a tax increase.
• B)government purchases will have to decline.
• C)interest rates will have to decline.
• D)government purchases will have to increase.
• E)interest rates will have to increase.

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Definitions:

Cash Flow from Assets

The total amount of money being transferred in and out of a business, especially from operational, investing, and financing activities.

Dividends Paid

The portion of a company’s earnings distributed to its shareholders, usually in the form of cash or additional shares.

Financial Leverage

The use of borrowed capital (debt) to increase the potential return of an investment.

Capital Structure

The blend of loans and shareholder capital utilized by a corporation to support its operational activities and development.