Suppose the Government Borrows to Purchase Military Ammunition Which Is

question 30

Multiple Choice

Suppose the government borrows to purchase military ammunition which is immediately used up in target practice.The rate of return on this investment is ________,and in this case the government debt ________ a burden on future taxpayers.

• A)r,is not
• B)r,is
• C)0,is not
• D)-r,is not
• E)-r,is

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Definitions:

Dividends Per Share

The amount of dividend that a company pays out for each outstanding share of its common stock.

Dividend Yield

A financial metric indicating the annual dividends a company distributes compared to its stock price.

Earnings Per Share

A financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.