The Difference in the Influence of a Multiplier Between the Short

question 94

Multiple Choice

The difference in the influence of a multiplier between the short run and the long run is that

• A)the multiplier effect is larger in the long run.
• B)the multiplier effect is zero in the long run.
• C)the multiplier effect is zero in the short run.
• D)there is no multiplier effect in the short run.
• E)the multiplier effect depends on potential GDP in the long run.

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Definitions:

IPO

An Initial Public Offering is the act of a private entity offering its shares to the general public for the first time, thereby transitioning into a public company.

Oversubscription Privilege

is a right or privilege granted to existing shareholders to purchase additional shares in a new issue before it is offered to the public, especially in cases where the demand exceeds the supply.

Rights Offering

A method by which a company raises capital by giving existing shareholders the right to buy additional shares at a discount to the market price before offering them to the public.

General Cash Offer

A public offering of securities to all investors by a company, which involves selling securities directly to the general public to raise capital.