Which of the Following Is More of a Short-Run Than

question 171

Multiple Choice

Which of the following is more of a short-run than a long-run goal?

• A) Increasing the capital stock
• B) Encouraging investment in human capital
• C) Moderating economic fluctuations
• D) Stimulating economic growth
• E) Increasing private investment

---

Definitions:

Financial Leverage

Financial leverage refers to the use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the income or capital gain from the assets will exceed the cost of borrowing.