The Circular Flow Shows That

question 299

Multiple Choice

The circular flow shows that

• A) GDP equals aggregate income.
• B) aggregate expenditure is less than aggregate income.
• C) aggregate production equals aggregate expenditure.
• D) Both answers A and C are correct.

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Definitions:

Divestitures

The process of selling off subsidiary business interests or investments as a strategic move for a company.

Proxy Solicitation

The process of gathering votes from shareholders to vote on corporate matters when they cannot attend the shareholder meeting in person.

Tender Offer

An offer made by an investor or acquiring company to purchase shares from the shareholders of a company at a specific price for a certain period.

Sale of Stock

This refers to the process of selling shares of a company to investors; this can be done via public offerings or through private sales.