Appropriate Fiscal Policy in the U

question 190

Multiple Choice

Appropriate fiscal policy in the U.S.in 2009 would attempt to

• A)increase taxes.
• B)decrease aggregate supply.
• C)increase aggregate demand.
• D)decrease aggregate demand.

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Definitions:

Held-to-Maturity Securities

Financial assets purchased with the intention of holding them until they mature; commonly bonds or other debt securities.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, representing the return on investment a shareholder receives from dividends alone.

Preferred Stock

A type of stock that gives shareholders preference over common stockholders in the distribution of dividends and assets upon liquidation.

Common Stock

Equity securities representing ownership in a corporation, providing voting rights and sharing in the profits through dividends.