What Was the Economic Philosophy Called That Assumed That the World's

question 65

Multiple Choice

What was the economic philosophy called that assumed that the world's wealth was fixed and one country could only increase its wealth at the expense of another?

• A) Capitalism
• B) Absolutism
• C) Monetarism
• D) Mercantilism

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Definitions:

Par Value

A nominal value assigned to a share of stock or bond that is typically printed on the face of the certificate.

Market Yield

The return on investment for a security currently traded in the market, often referring to bonds and calculated by considering the annual interest payments and the market price.

Negative Bond Covenant

A condition in a bond agreement that forbids certain activities by the issuer, aimed at protecting the interests of the bondholders.

Dividend Payments

Distributions issued by a company to its stockholders, typically sourced from the firm's earnings.