Suppose That in a Closed Economy GDP Is Equal to 15,000,government

question 39

Multiple Choice

Suppose that in a closed economy GDP is equal to 15,000,government purchases are equal to 3,000,consumption equals 10,500,and taxes equal 3,500.What are private saving and public saving?

• A)1,500 and -500,respectively
• B)1,500 and 500,respectively
• C)1,000 and -500,respectively
• D)1,000 and 500,respectively

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Definitions:

Cumulative Preferred Stock

Cumulative Preferred Stock is a type of preferred stock where dividends accumulate if not paid in a given year, prioritizing these dividends over common stock dividends in future payments.

Annual Dividend

The total dividend payment a company distributes to its shareholders for a year, often quoted on a per-share basis.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Common Stock

Common stock refers to shares of ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.