Crowding in Is More Likely to Occur,as a Consequence of Federal

question 132

Multiple Choice

Crowding in is more likely to occur,as a consequence of federal deficits,when

• A)the economy is overheated
• B)interest rates increase significantly
• C)a contractionary gap exists
• D)the deficits lower expectations about economic growth
• E)an expansionary gap exists

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Definitions:

Target Firm

A company that has been identified as a potential acquisition target by another company or investor.

Equity Carve-Out

The sale of stock in a wholly owned subsidiary via an IPO.

Initial Public Offering

The first sale of stock by a private company to the public, marking a transition from a private to a publicly traded company.

Wholly Owned Subsidiary

A company whose entire stock is held by another company.