Which of the Following Will Not Contribute to Increasing the Stock

question 73

Multiple Choice

Which of the following will not contribute to increasing the stock of physical or human capital of a nation?

• A)​an increase in savings
• B)​a reduction in taxes on capital gains and stock dividends
• C)​a lack of enforcement of private property rights
• D)​the subsidization of higher education

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Definitions:

Actuarial Information

Data and calculations used by actuaries to assess risks and determine premiums or forecasts for insurance and other industries.

Bond Issuance

The process by which a borrower issues bonds to lenders or investors in order to raise capital, involving agreements to repay the borrowed amount plus interest.

Discount

A reduction from the usual cost of something, typically provided to incentivize purchase or reward customers.

Effective Interest Method

A method of calculating the amortized cost of a bond and of allocating interest expense over the bond's life, based on the bond's yield at issuance.