Which Is True of Total Federal Spending Relative to GDP

question 21

Multiple Choice

Which is true of total federal spending relative to GDP?

• A) It is the most commonly used measure of the size of government.
• B) There really is no upper limit to the ratio of total government spending to GDP.
• C) It has steadily increased over the last 50 years.
• D) All of the above are correct.
• E) Only a and c are correct.

Understand the basic principles of stock valuation models.

Identify the rights and benefits of common stockholders.

Apply the dividend discount model (DDM) for calculating the current price of a stock given its future dividend growth and required return rate.

Calculate the value of a stock based on constant growth dividend models.

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Definitions:

Independent States

Sovereign entities that have control over their own territory, with the power to make and enforce laws, and engage in relations with other states.

Bicameral Legislature

A legislative body consisting of two separate chambers or houses, typically an upper and a lower house, each with distinct powers and responsibilities.

Executive Branch

The branch of the United States government responsible for enforcing laws; it is led by the President and includes the cabinet and federal agencies.

Articles of Confederation

The Articles of Confederation served as the first constitution of the United States, providing a framework for national government before being replaced by the U.S. Constitution.