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If the economy is growing beyond potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply?
Dividends
Payments made by a corporation to its shareholder members, distributed from the company's profits.
Beta
A measure of a stock's volatility in relation to the overall market; a beta higher than 1 indicates greater volatility.
Risk-Free Rate
The estimated profit percentage from an investment considered free of risk, typically indicated by government bonds' interest rates.
Common Stock
A type of security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and receive dividends.
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