What Would Best Explain the Reluctance of General Motors to Eliminate

question 54

Multiple Choice

What would best explain the reluctance of General Motors to eliminate its dividend in
2008, only a few months before its financial collapse and eventual government takeover?

• A) Clientele effect
• B) Leftist theory
• C) Rightest theory
• D) Signaling hypothesis

---

Definitions:

Real GDP

An economic metric that quantifies the value of all finished goods and services produced within a country's borders in a specific time period, corrected for changes in price or inflation.

Money Supply

The complete financial resource pool available in an economy at a particular period.

Central Banks

Central banks are national financial institutions that manage a country's currency, money supply, and interest rates, overseeing its monetary policy.

Money Supplies

The overall financial assets tally in an economy at a given point.