The Conventional View Among Economists Is That Persistent Budget ________

question 16

Multiple Choice

The conventional view among economists is that persistent budget ________ lead to a lower level of potential GDP in the ________ run.

• A) surpluses; short and long
• B) surpluses; short
• C) deficits; short
• D) deficits; long

Calculate and analyze the weighted average cost of capital (WACC) and its components.

Understand the effects of leverage on a firm's capital structure and shareholder's required returns.

Recognize the implications of capital structure decisions on a firm's valuation and the cost of capital.

Understand the concept of structural violence caused by economic systems.

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Definitions:

Coal

A fossil fuel that is formed from the remains of ancient plants and used for electricity generation and industrial processes.

Microloans

Small, short-term unsecured loans provided to entrepreneurs or groups in disadvantaged areas, typically used to start or expand small businesses.

Grameen Bank

A microfinance organization and community development bank founded in Bangladesh that makes small loans to impoverished borrowers.