If S = -200 + 0

question 125

Multiple Choice

If S = -200 + 0.2Y and I = 100, then the equilibrium level of income is

• A) 1,200.
• B) 1,500.
• C) 3,000.
• D) 4,000.

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Definitions:

Value Of A Right

In the context of finance, it refers to the value of a right to purchase additional securities at a predetermined price before the public.

New Share

A unit of stock that has been recently issued to the public by a company, increasing the total number of shares outstanding.

Rights Offering

A form of raising capital where a company offers existing shareholders the right to purchase additional shares at a discounted price before offering them to the public.

Price-earnings Ratio

The price-earnings ratio (P/E ratio) is a valuation metric comparing a company's current share price to its per-share earnings, helping investors assess the value of a stock.