The IS Curve Would Unambiguously Shift Up If There Were

question 92

Multiple Choice

The IS curve would unambiguously shift up if there were

• A)an increase in both government purchases and corporate taxes.
• B)an increase in both government purchases and the expected future marginal product of capital.
• C)an increase in the expected future marginal product of capital and a decrease in expected future output.
• D)a decrease in both corporate taxes and the expected future marginal product of capital.

Understand the relationship between state and local governments, including the creation and dissolution of local governments.

Identify and differentiate between federal and unitary systems of government.

Recognize amendments and clauses in the U.S. Constitution that highlight states' rights and powers.

Understand the concept of federalism and how power is shared between state and federal governments.

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Definitions:

Par Value

The face value of a stock or bond as stated by the issuing company, which does not necessarily match the market value.

Common Stock

A type of equity security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.

Dividends in Arrears

Unpaid dividends on cumulative preferred stock, which must be paid out before any dividends can be issued to common stockholders.

Cumulative Preferred Stock

A type of preferred stock where missed dividend payments are accumulated and must be paid before any dividends can be issued on other stock classes.