Which of the Following Can Reduce the Level of Long-Run

question 33

Multiple Choice

Which of the following can reduce the level of long-run economic growth?

• A) A decrease in deficit spending by the government.
• B) An increase in government safety regulations.
• C) An increase in the savings rate.
• D) Government enforced property rights.

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Definitions:

Stock Split

Issuing of additional shares of stock to stockholders; total par or stated value remains the same.

Par Value

The face value of a bond or stock, representing the amount to be returned to the bondholder at maturity or the value assigned to a share of stock for accounting purposes.

Stock Split

A corporate action to increase the number of shares, reducing the price per share correspondingly without changing the market capitalization.

Par Value

A nominal value given to a security or stock specified by the issuing company, which may not necessarily reflect its actual market value.