When the U

question 93

Multiple Choice

When the U.S. government runs a deficit, the resulting higher interest rate:

• A) "crowds out" domestic investment.
• B) increases net capital outflow.
• C) reduces domestic saving.
• D) None of these are true.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue, representing the company's profit.

Outstanding Stock

Capital stock that has been issued and is being held by stockholders.

Weighted-Average Number

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used to find a kind of average that considers weight.

Preferred Stock

A type of stock that grants holders priority for dividend payments and, in some cases, priority in asset liquidation over common stockholders.