Other Things the Same,if the Government Increases Transfer Payments to Households,then

question 196

Multiple Choice

Other things the same,if the government increases transfer payments to households,then the effect of this on the government's budget

• A)will make investment rise.
• B)will make the rate of interest rise.
• C)will make public saving rise.
• D)All of the above are correct.

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Definitions:

Interest Expense

Over a span of time, the monetary burden borne by an entity due to borrowed capital.

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Total Equity

The sum of all stakes in a corporation, determined by subtracting total liabilities from total assets.

Times Interest Earned

Times interest earned is a financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.