-Refer to the Above Diagram

question 193

Multiple Choice

-Refer to the above diagram.The impact of the public sector on the equilibrium GDP:

• A) is expansionary.
• B) is contractionary.
• C) is neutral.
• D) cannot be determined from the information given.

---

Definitions:

Dividend Growth Model

A model that estimates the value of a company's stock based on its expected future dividends and their growth rate.

Market Rate

The market rate, often referred to as the going rate, is the standard or average interest rate, wage, or price charged or paid for a specific good, service, or asset in a specific market.

Equity Securities

Financial instruments that represent ownership interest in a company or corporation, such as common stock.

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes to one or several candidates in a way that can increase minority shareholder representation on the board of directors.