The value of a corporation typically rises when stockholders allow the corporation to reinvest its profit rather than pay out dividends
Indicate whether the statement is true or false
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Typical goals for fiscal policy are
A) running high deficits and raising consumer prices. B) high prices for consumers and low prices for businesses. C) high employment and price stability. D) increasing the money supply so the government can spend more.
If a price ceiling is not binding, then a. the equilibrium price is above the price ceiling
b. the equilibrium price is below the price ceiling. c. it cannot be legally enforced. d. None of the above is correct because all price ceilings must be binding.
If the price of a depleting resource does not rise as anticipated, it may be because: a. new reserves of the resource were discovered
b. new methods of mining or refining were developed. c. price controls were passed by law. d. All of the above are correct.
Assume that a country imposes a tariff in order to gain a price advantage on an item. What is the typical response from the exporting country?
A. It accepts the situation and does nothing about it. B. It seeks greater efficiency in order to offset the tariff. C. It refuses to sell to the country that imposes the tariff. D. It retaliates by imposing tariffs or quotas on items from the other country.