-In the Above Figure, If the Economy Is Initially at Point

question 43

Multiple Choice

-In the above figure, if the economy is initially at point D and government expenditure increases, the economy will

• A)move to point B.
• B)move to point C.
• C)stay at point D.
• D)move to point A.

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Definitions:

Treasury Stock

Treasury stock refers to shares which were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Cash Dividends

Payments made by a corporation to its shareholders, typically from profits, in the form of cash.

Retained Earnings

The portion of a company's profits that is kept or retained within the company, rather than being paid out as dividends to shareholders.

Shareholders Equity

The residual interest in the assets of a company after liabilities are deducted, effectively the net worth attributable to shareholders.