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Explain the Reasons Why the AD Curve Slopes Downward

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Essay

Explain the reasons why the AD curve slopes downward.


Definitions:

Cumulative

Refers to the aggregate total of items or figures collected over a period of time, often used to describe the total amount of dividends or interests.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in the period they were due.

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Total Capital

The sum of a company's debt and equity, representing the total funds available to the business for use.

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