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Assume That a Large Corporation, Such as General Electric, Needs

question 15

Multiple Choice

Assume that a large corporation, such as General Electric, needs money in the short term. Which one of the following securities is that corporation most likely to issue to meet this need?

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Definitions:

Average Propensity

The average tendency of an entity (such as a household) to spend a portion of income; can pertain to consumption or saving.

Disposable Income

Disposable income is the portion of an individual's or household's earnings left over for savings and expenditures after paying off income taxes.

Autonomous C

Autonomous consumption, the level of spending not influenced by current levels of income.

Induced C

Induced consumption, which refers to the spending by households that varies with income levels.

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