If Wealthy U

question 59

Multiple Choice

If wealthy U.S.consumers save most of their tax cut, this means that, compared to government spending changes,

• A)tax changes would have a higher multiplier effect.
• B)tax changes would have a weaker multiplier effect.
• C)government spending would have a weaker multiplier effect.
• D)U.S.consumers would spend all of their tax cut.

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Definitions:

Proxy Fight

A battle for control of a company waged by a group of shareholders against the current management, typically requiring the solicitation of proxies from other shareholders.

Board Members

Individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Shareholders

Individuals or institutions that own one or more shares of stock in a public company, thereby having a partial ownership stake in the company.

Common Stock

Equity securities that represent ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.