The part of corporate profits that is paid to the shareholders of a corporation is
A) retained earnings.
B) shareholders.
C) dividends.
D) business revenue.
Answer: C
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A common definition of a recession is a time with
A) a decline in the price level. B) a decline in interest rates. C) a decrease in real GDP for two or more successive quarters. D) a decrease in real GDP for two or more successive years.
If capital deepening increases from $100 to $150 and this increase results in worker's productivity increasing from $60 to $70, and if there were 100 workers, then GDP is
a. $10,500 b. $6,000 c. $1,500 d. $7,000 e. $1,000
Refer to Figure 36.5 for the dollar-euro foreign exchange market with the market exchange rate at P1. The European Union (EU) and U.S. governments have agreed on a fixed exchange rate of P2. This situation
A. Causes an excess demand for euros. B. Requires that the EU buy U.S. dollars. C. Causes a balance-of-payments deficit for the EU. D. Calls for an expansionary fiscal policy in the EU.
Exhibit 8-9 Investment expenditures
?
In Exhibit 8-9, which of the following could cause the shift from I1 to I2?
A. lower money holdings B. lower interest rates C. expectations of a future economic slow-down D. lower disposable income