A Type of Public Policy Set in Response to Rising

question 65

Multiple Choice

A type of public policy set in response to rising prices of a basic necessity,such as food,might be:

• A) to make it illegal to charge higher prices for those goods.
• B) to hire more producers of those goods.
• C) to subsidize the price of those goods.
• D) All of these are ways government can try to address rising prices of a basic necessity.

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Definitions:

Firm Commitment Underwriting

A type of underwriting where the underwriter agrees to buy all the unsold shares of an issue at a fixed price, taking on the risk of selling them to the public.

Underwriting Syndicate

A group of financial institutions that work together to issue new securities to the public, sharing the risk and the work.

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.