Tools for Supply-Side Policy Include

question 108

Multiple Choice

Tools for supply-side policy include:

• A) Changes in tax incentives.
• B) Open-market operations.
• C) Changes in government spending.
• D) Changes in the discount rate.

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Definitions:

Irrational Investors

Investors who make financial decisions based on emotions or biases rather than on rational evaluation.

Arbitragers

Individuals or entities that attempt to profit from price differences of the same or similar financial instruments, on different markets or in different forms.

Market Inefficiency

A condition where all available information is not fully incorporated into asset prices, leading to opportunities for higher returns.

Siamese Twin Companies

Companies listed in different countries that share an operational business but trade separately on the stock exchange.