In Response to the "Great Depression 2

question 120

True/False

In response to the "Great Depression 2.0," the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.

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Definitions:

Systematic Risk

A risk that influences a large number of assets. Also called market risk.

Optimal Capital Structure

The best mix of debt and equity financing that minimizes the company's cost of capital and maximizes its value.

Weighted Average Cost of Capital

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted.