Logrolling Refers to

question 187

Multiple Choice

Logrolling refers to

• A) vote trading among legislators.
• B) the tendency of voters to free-ride on the payment for public goods.
• C) the power of well-organized interest groups.
• D) the tendency of legislators to favor the interests of the timber (logging) industry.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid out, indicating the level of reinvestment in the business.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.

Market Capitalization Rate

An alternative term often used to refer to the cost of equity or the expected return of a market portfolio.