Which of the Following Is Not a Government Policy That

question 80

Multiple Choice

Which of the following is not a government policy that can enhance economic growth?

• A)having free international trade
• B)keeping marginal tax rates low
• C)adopting regulations fixing interest rates at low levels
• D)protecting and enforcing private property rights and contracts

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Definitions:

Common Shares

Equity securities that represent ownership interest in a corporation, entitling shareholders to dividends and a say in corporate matters.

Weighted Average

A calculation that takes into account both the quantity and the significance of each item in a set to find an average that is influenced by the size or weight of each component.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, often with fixed dividends and no voting rights.

Basic Earnings

Basic earnings typically refers to the net income of a company, calculated before any effects of preferred dividends, divided by the weighted average number of common shares outstanding.