The Initial Effect of the 2009 Obama Stimulus Plan Upon

question 67

Multiple Choice

The initial effect of the 2009 Obama Stimulus Plan upon the federal budget was to

• A)eliminate all opportunities for "logrolling" in the Congress.
• B)eliminate the corporate income tax liabilities of major oil companies.
• C)increase the federal budget deficit by as much as $750 billion.
• D)all of the options are correct.

---

Definitions:

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.

Dividend Policy

The policy a company uses to decide how much it will pay out to shareholders in dividends. It involves whether to distribute profits to shareholders or reinvest them in the business.

Residual Dividend

A policy where dividends are paid to shareholders from the leftover or "residual" profits after all operational and capital expenditures are met.