Margin Accounts Are Used By

question 73

Multiple Choice

Margin accounts are used by:

• A)traders who think their long-run returns will be greater than the cost of borrowing.
• B)speculators who think their long-run returns will be greater than the cost of borrowing.
• C)investors who think their long-run returns will be greater than the cost of borrowing.
• D)All of the above

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Definitions:

Regressive

Pertaining to a tax system where the tax rate decreases as the taxable amount increases, leading to a higher tax burden on lower-income earners.

Government Expenditures

The total amount spent by the government on goods, services, and public projects.

Net Taxes

The difference between total taxes paid and government transfers received, representing the actual tax burden on an individual or business.

Shifted

Refers to a change in position or direction, often used in economics to describe movements in supply or demand curves.