Which of These Is a Supply-Side Approach to Increase Growth

question 69

Multiple Choice

Which of these is a supply-side approach to increase growth?

• A)Spending on the construction and repair of state highways
• B)Providing tax benefits to start-up companies
• C)Investing in the production of arms and ammunitions
• D)Replacing old aircrafts with new fighter planes
• E)Increasing transfer payments to retirees

---

Definitions:

Excess Cash

Refers to the amount of cash a company holds that is beyond what it requires for day-to-day operations and investments.

Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.

Share Repurchase

A company's buyback of its own shares from the marketplace, reducing the number of outstanding shares and potentially increasing share value.

Dividend Per Share

The amount of dividend that a company pays out to each shareholder for each share they own.