Which of the Following Is True of the Centralist Position

question 38

Multiple Choice

Which of the following is true of the centralist position?

• A)The centralist position has been consistently criticized by presidents, Congress, and the Supreme Court.
• B)Centralists champion the idea of the Constitution as an interstate compact.
• C)Centralists believe that the national government should not interfere with activities reserved for the states.
• D)Centralists argue that the national government is a government of all the people, whereas each state speaks for only some of the people.
• E)Centralists have been particularly supportive of the devolution revolution, which argues for returning responsibilities to the states.

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Definitions:

Optimal Capital Structure

The most favorable blend of debt and equity financing that minimizes a company's cost of capital while maximizing its market value.

Stock Price

The current price at which a share of a company is traded on the stock market.

Optimal Capital Structures

The best mix of debt, equity, and other financial instruments that minimizes the cost of capital for a company while maximizing its value.

Financial Leverage

The use of borrowed funds to increase the potential return of an investment, which also increases the risk of loss.