Figure 4.2 -In Figure 4.2, One Possible Explanation for a Decrease in Decrease

question 8

Multiple Choice

Figure 4.2
-In Figure 4.2, one possible explanation for a decrease in the interest rate from i₂ to i₁ is

• A)an increase in government budget deficits.
• B)an increase in expected inflation.
• C)a decrease in economic growth.
• D)a decrease in the riskiness of bonds relative to other investments.

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Definitions:

De Jure Corporation

Latin for “lawful corporation” a corporation that has met the mandatory statutory provisions and thus received its certificate of incorporation.

De Facto Corporation

A company that acts like a corporation and enjoys some of its benefits, despite not being duly incorporated according to statutory requirements.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often referring to income taxed both at the corporate level and personally.