The traditional Keynesian approach to fiscal policy assumes that

A) the effect of unemployment compensation is to destabilize the economy.
B) an equal income distribution ensures a stable economy.
C) consumers spend more when their incomes are higher.
D) cutting taxes is a more effective way to stimulate the economy than is increasing government spending.

Western electric has 32,000 shares of common stock outstanding at a price per share of $79 and a rate of return of 13.00 percent. the firm has 7,300 shares of 7.80 percent preferred stock outstanding at a price of $95.00 per share. the preferred stock has a par value of $100. the outstanding debt has a total face value of $404,000 and currently sells for 111 percent of face. the yield to maturity on the debt is 8.08 percent. what is the firm's weighted average cost of capital if the tax rate is 39 percent?

What is a potential negative effect of an expansionary policy? decreased borrowing increased interest rates increased inflation decreased available credit

Select each of the paced steps below. define the problem. conduct an internet search for information. list the alternatives. select the criteria. evaluate the alternatives. make a decision. evaluate the decision.