The reason a corporation has retained earnings is to
A. avoid the double taxation of corporate profits.
B. be able to make unemployment payments.
C. pay unemployment taxes.
D. make investments that will increase the value of the stock.
Answer: D
You might also like to view...
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 hat in Denmark?
A) 1/6 of a clock B) 1/2 of a clock C) 2 clocks D) 6 clocks
The most direct and important consequence of an increase in asymmetric information problems is ________
A) a decrease in the probability of loan repayment B) inability to assess the probability of loan repayment C) unwillingness of borrowers to accept the market rate of interest D) inability of creditors to acquire enough funds to meet borrowers' demand
Ahmed is working and is spending more than he is earning by using his savings to make up the difference. Which of the following statements is TRUE?
A) Ahmed is in equilibrium since he pays all of his bills. B) Ahmed is in disequilibrium. C) By using savings Ahmed is using special drawing rights. D) By using savings Ahmed has caused the balance of payments to go into a deficit situation.