Which of the Following Would Tend to Increase AD

question 152

Multiple Choice

Which of the following would tend to increase AD?

• A)​a commercial bank using excess reserves to extend a loan to a customer
• B)​a commercial bank purchasing U.S.securities from the Fed as an investment
• C)​an increase in reserve requirements
• D)​an increase in the discount rate

Analyze the factors influencing the optimal capital structure of a firm.

Recognize the benefits and drawbacks of debt financing, including the impact on the cost of equity and shareholder value.

Understand the definitions and concepts related to bankruptcy, including direct and indirect costs, as well as options for reorganization and liquidation.

Grasp the importance and calculation of the weighted average cost of capital (WACC) in different tax contexts.

---

Definitions:

Spelling Errors

Mistakes made in the arrangement of letters within words, often leading to incorrect representation and understanding.

Sergeant

A rank used in various forms of organization, typically military or police, denoting an officer who commands personnel directly.

Rule Of Nine

A principle in statistics that applies to the process of selecting samples or making estimations, though specific details may vary depending on context.

Numbers

Symbols or words used to represent quantities or to perform calculations, essential in mathematics and quantitative analysis.