Which Statement Is True

question 87

Multiple Choice

Which statement is true?

• A)The Keynesians and the monetarists are proponents of the crowding-out effect.
• B)The Keynesians and the monetarists are proponents of the crowding-in effect.
• C)The Keynesians are proponents of the crowding-out effect and the monetarists are proponents of the crowding-in effect.
• D)The Keynesians are proponents of the crowding-in effect and the monetarists are proponents of the crowding-out effect.

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Definitions:

Capital Gains

The increase in value of an asset or investment above its purchase price, realized upon the sale of the asset.

Clientele Effect

A theory suggesting that the types of investors attracted to certain stocks or dividends policies can affect the stock price or policy sustainability.

Dividend Policy

Guidelines a company follows to decide how much it will pay out to shareholders in dividends.

Investors

Individuals or institutions that allocate capital to various types of investments with the expectation of earning a financial return.