If profits are reinvested in the corporation, then
A) payments made to bondholders will be less.
B) there are fewer funds available to distribute to stockholders.
C) the company will sell more bonds in order to pay dividends to stockholders.
D) the high profits indicate that common stockholders will get larger dividends than normal.
Answer: B
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The infant-industry argument is used by those who assert they want to
A) limit imports to protect new industries. B) increase exports to encourage growth of new industries. C) limit exports. D) increase imports to earn money to support new industries. E) encourage foreign firms to dump in the United States.
Explain why the buffalo almost became extinct while cattle did not, even though both provide similar goods for people
What will be an ideal response?
Which of the following is true?
a. Poor countries are unable to ignite the growth process unless they receive financial aid from richer countries. b. Countries that fail to adopt institutions and policies supportive of trade, entrepreneurial discovery, and private investment will remain poor in the foreseeable future. c. Countries that lack an abundance of natural resources have been unable to grow and achieve high income levels. d. Countries with a large population relative to their land area are destined to remain poor.
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