A) Shift Aggregate Demand by Increasing Taxes

question 302

Multiple Choice

• A) shift aggregate demand by increasing taxes
• B) shift aggregate demand by decreasing transfer payments
• C) shift aggregate demand by decreasing government spending
• D) shift aggregate demand by increasing transfer payments

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Definitions:

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid as scheduled, needing to be fulfilled before common stock dividends.

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits in the form of dividends.

Dividend

A disbursement from a corporation to its stockholders, often derived from earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend priority.