Very High Debt Burdens Can Result in

question 31

Multiple Choice

Very high debt burdens can result in

• A)fine tuning.
• B)automatic stabilizer.
• C)the structural deficit.
• D)tax smoothing.
• E) debt repudiation.

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Definitions:

Paid-In Capital

Funds that are received by a company from investors in exchange for stock, representing the capital provided by shareholders as a part of the equity of the company.

Cash Dividends

Payments made out of a corporation's earnings to its shareholders in the form of cash.

Treasury Stock

Refers to shares that were previously issued and outstanding but have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders, often to make the stock more affordable.