A Crucial and Powerful Argument Presented in the Federalist No

question 4

Multiple Choice

A crucial and powerful argument presented in The Federalist No.10 was that it was

• A) impossible to safeguard individual rights without a strong central government.
• B) possible to extend a republican form of government over a large territory.
• C) inevitable that slavery would ultimately disappear in the new republic.
• D) better to have presidential terms of four years than annual elections.
• E) necessary to have a powerful Senate to advise and control the president.

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Definitions:

Annual Dividend

The total amount of dividend payments made to shareholders in a year, reflecting the company’s profitability and its distribution policy.

Coupon Rate

The annual interest payment on a bond, denoted as a percentage of its face value.

After-Tax Cost of Debt

The interest expense on debt adjusted for taxes, reflecting the actual cost to the company.

Marginal Tax Rate

The rate at which additional income is taxed, reflecting the proportion of each additional dollar of income that goes to taxes.