When Prices Are Fixed and There Are No Imports or Income

question 205

Multiple Choice

When prices are fixed and there are no imports or income taxes, the value of the multiplier is

• A) less than one.
• B) greater than one.
• C) equal to one.
• D) equal to zero.

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Definitions:

Common Stock

A type of ownership in a corporation that entitles shareholders to vote on corporate matters and receive a share of the company's profits through dividends.

Fair Value

A measure of the price at which an asset would change hands between willing parties, neither being under compulsion to buy or sell.

Par Value

The face value of a bond or the stock value stated in the corporate charter, which often bears no relation to its market value.

Consolidated Buildings

Consolidated buildings involve the aggregation of building assets owned by a parent company and its subsidiaries for financial reporting purposes.