Which of the Following Is an Example of a Positive

question 31

Multiple Choice

Which of the following is an example of a positive economic statement?

• A) The economy's real output increased at about 3 percent last year and the unemployment rate decreased.
• B) A central bank should not print too much money because inflation could result.
• C) Congress should stabilize the social security system by raising taxes now.
• D) The government farm products surplus should be distributed to the needy.

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Definitions:

Rights Offering

A financial offering in which a company gives existing shareholders the right to buy additional shares at a discounted price before offering it to the public.

Underwriting Provision

A clause in financial agreements, especially in insurance and securities, where an underwriter commits to buy and resell a specific amount of securities or assumes financial risk for a fee.

Standby Underwriting Agreement

A contract where the underwriter commits to buy any shares not purchased by investors during an initial public offering (IPO) or secondary offering.

Unsubscribed Portion

That part of a new issue of securities not taken up or purchased by investors during an offering period.