When the Government Share of GDP Increases

question 117

Multiple Choice

When the government share of GDP increases,

• A)there is a downward movement along the national saving rate line.
• B)the national saving rate line shifts to the right.
• C)the national saving rate line shifts to the left.
• D)there is an upward movement along the national saving rate line.
• E)the national saving rate is unaffected.

---

Definitions:

Stock Repurchases

A company's buyback of its own shares from the marketplace, reducing the amount of outstanding stock.

Excess Cash

The amount of cash holdings that exceed the normal operational needs of a company.

Reverse Split

A corporate action which consolidates the number of existing shares of stock into fewer, proportionately more valuable, shares.

Shares Outstanding

Shares outstanding refers to the total number of shares of a company's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.