Fiscal Policy

question 100

Multiple Choice

Fiscal policy

• A) is dangerous in the short run because it crowds out investment spending
• B) can change equilibrium GDP in the short run
• C) can change equilibrium GDP in the long run
• D) can change equilibrium GDP in both the long and the short run
• E) is dangerous in the long run because it triggers a multiplier effect

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Definitions:

Annual Dividend

The total dividend payment a company distributes to its shareholders for a year, often quoted on a per-share basis.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Common Stock

Common stock refers to shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set at the time it is issued.