In 2008, Germany Passed a Stimulus Package of $29 Billion

question 4

Multiple Choice

In 2008, Germany passed a stimulus package of $29 billion as its economy slowed. This policy action follows the __________to restore full employment.

• A) monetarist viewpoint that supports increases in expenditure by the federal government
• B) Keynesian viewpoint that supports increases in the money supply
• C) Keynesian viewpoint that supports increases in federal government expenditure
• D) new classical viewpoint that discourages the use of expenditure by the federal government

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Definitions:

Cost of Capital

The rate of return a company must pay to its creditors and shareholders for the use of their capital.

Subjective Approaches

Methods or considerations based on personal opinions, interpretations, feelings, or judgments rather than objective facts or analysis.

Pure Play Approaches

Investment strategies that focus on companies that specialize in a particular product or service, excluding diversified or conglomerate firms.

Cost of Capital

The rate of return required by a capital provider, whether debt or equity, to make an investment in a project, asset, or firm.