Which of the Following Is True

question 52

Multiple Choice

Which of the following is true?

• A) Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie.
• B) Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink.
• C) Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth.
• D) a and c
• E) b and c

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Definitions:

Futures Markets

Exchanges that facilitate the buying and selling of futures contracts, which are agreements to buy or sell assets at a future date at a predetermined price.

Leverage

The use of borrowed money to increase the potential return of an investment, which can also magnify the potential loss.

Margin

The difference between the selling price of a product or service and its cost, or the borrowed funds used to invest in securities.

Margin Call

A demand by a broker that an investor deposits further cash or securities to cover possible losses.