An Example of Nondiscretionary Policymaking Is

question 38

Multiple Choice

An example of nondiscretionary policymaking is

• A)the monetary rule.
• B)expansionary fiscal policy.
• C)changes in the interest rate initiated by the Federal Government.
• D)a tax cut to stimulate the economy.

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Definitions:

Preferred Stock

Equity shares that give investors a claim on a company's earnings before dividends are paid to common stockholders, often with no voting rights.

Common Equity

The amount of ownership in a corporation that is held by common shareholders, represented by common stock.

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment.

Equity Financing

The process by which a company raises capital through the sale of shares.