In the Intertemporal Budget Constraint,the Term

question 89

Multiple Choice

In the intertemporal budget constraint,the term
Is called:

• A)the total debt.
• B)the initial debt.
• C)the government deficit.
• D)the government surplus.
• E)none of the above

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate them for the risk they undertake by investing their capital.

WACC

Weighted Average Cost of Capital; an estimation of a corporation's cost of capital, with each capital category being weighted in proportion.