Other Things Being Equal, During a Period When the Federal

question 135

Multiple Choice

Other things being equal, during a period when the federal government issues more Treasury securities to borrow funds

• A) the flow of government expenditures during that period must exceed the flow of tax revenues.
• B) the flow of government expenditures during that period must exceed the stock of tax collections.
• C) the stock of government deficit spending during that period must exceed the flow of tax revenues.
• D) the stock of government deficit spending during that period must exceed the stock of tax collections.

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Definitions:

Cumulative Voting

A voting system used by corporations allowing shareholders to allocate their entire vote in any proportion to one or more candidates for the board of directors.

EPS Growth Rate

A measure of the annualized rate of increase in earnings per share of a company over time.

Rate of Return

The rate of return is the gain or loss on an investment over a specified period, expressed as a percentage of the investment’s cost.