Fiscal Policy Refers to the Idea That Aggregate Demand Is

question 26

Multiple Choice

Fiscal policy refers to the idea that aggregate demand is changed by changes in what?

• A)the money supply
• B)government spending and taxes
• C)trade policy
• D)exchange rates

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Definitions:

Call Premiums

The amount by which the price of a callable bond or preferred stock exceeds its par value or redemption price, often stipulated as a penalty for early redemption by the issuer.

Coupon Rates

Interest rates specified on bonds or other fixed-income securities that issuers promise to pay bondholders annually, expressed as a percentage of face value.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during their life, usually at the discretion of the bondholder.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, accounting for interest payments and the capital gain or loss.