In the Two Decades Following 1990, Subsidized Federal Loans Per

question 274

Multiple Choice

In the two decades following 1990, subsidized federal loans per full-time student more than tripled. Economic analysis indicates that this expansion in subsidies

• A) reduced the cost of a college education by the amount of the subsidies.
• B) increased the cost of a college education by the amount of the subsidies.
• C) reduced the cost of a college education of the students receiving the subsidies, but this gain was partially offset by increases in the cost of education resulting from the subsidies.
• D) reduced the cost of a college education for students who did not accept the subsidies, but the net cost of education of those receiving the subsidies rose.

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Definitions:

Nonmonetary Exchange

A transaction in which businesses or individuals trade goods or services without the use of money.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of a company's profits and a right to vote on management issues.

Stock Split

An action a company takes to divide its existing stock into multiple shares to boost the liquidity of the shares.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the current value assigned by the market.