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Refer to the information provided in Figure 34.4 below to answer the question(s) that follow. Figure 34.4
-Refer to Figure 34.4. The demand and supply of pounds are S2 and D2. Which of the following can change the equilibrium exchange rate ($/pound) to $2.50 and the equilibrium quantity to 400 pounds?
Capital Gains
The profit earned from the sale of an asset, where the sale price exceeds the purchase price.
Cash Dividends
Profits paid out to shareholders by a corporation in the form of cash.
Retain Earnings
Profits that a company chooses not to pay out as dividends but instead reinvests in the business or keeps as a reserve for specific objectives.
Shareholders
Individuals or entities that own shares in a corporation, giving them ownership interest and usually voting rights in the company.
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