A corporation with “plowback”
A. deliberately earns negative profit on some activities in order to get better tax treatment.
B. buys back shares of its stock from shareholders.
C. retains some of its earnings for investment.
D. issues unsecured stock.
Answer: C
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The above figure shows the U.S. market for replacement cell phone batteries. With free trade, the United States imports ________ batteries and once the tariff illustrated in the figure is imposed, the United States imports______ batteries
A) 900,000; 700,000 B) 300,000; 100,000 C) 800,000; 400,000 D) 900,000; 100,000 E) 700,000; 300,000
Savings-and-loans are now federally insured through the
A) FDIC. B) FSLIC. C) NCUSIF. D) Comptroller of the Currency.
Which of the following is true of investment spending? a. It depends on perceptions about future economic conditions
b. It increases as the current level of real gross domestic product increases. c. As the expected rate of return on investment spending decreases, the investment spending function shifts upward. d. As the real interest rate decreases, the investment spending function shifts downward.
The rules established under the General Agreement on Tariffs and Trade (GATT) are enforced by an international body called the World Trade Organization (WTO)
a. True b. False Indicate whether the statement is true or false