To Measure GDP Using the Expenditure Approach You Must Collect

question 48

Multiple Choice

To measure GDP using the expenditure approach you must collect data on

• A) inflation.
• B) wages.
• C) saving.
• D) exports.

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Definitions:

Equity Financing

The process of raising capital through the sale of shares in a company, thereby granting ownership to investors.

Dividend Decision

The process by which a company's board of directors decides the amount of profits to be distributed to shareholders and the amount to be retained.

Signaling Effect

The signaling effect is a theory in finance suggesting that the actions of a company, such as dividend announcements or share buybacks, send signals to the market about its future prospects.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining how much to pay out in dividends and how often.