When Policy Mood Leans in a Liberal Direction, How Does

question 69

Multiple Choice

When policy mood leans in a liberal direction, how does government tend to respond?

• A) by giving tax cuts and tax credits to corporations
• B) by reducing civil liberties
• C) by expanding the federal government's role in different programs
• D) by cutting off foreign trade
• E) by following policies designed to reduce deficit spending

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Definitions:

Non-Cumulative

Pertaining to preferred stock, which does not accumulate unpaid dividends if they are not declared.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with fixed dividends.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the number of shares outstanding in the market.

Gain On Sale

The profit realized from the sale of an asset, when the selling price exceeds its original purchase price.