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Explain the logic according to liquidity preference theory by which an increase in the money supply changes the aggregate demand curve.
Sustainable Growth Rate
The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its leverage or equity.
Dividend Payout Ratio
The fraction of net earnings a firm pays out to its shareholders in dividends, indicating how much money a company returns to shareholders versus reinvesting.
Financial Statement
An official documentation detailing the fiscal transactions and status of a company, individual, or another entity.
Retention Ratio
The portion of net income that is retained by a corporation rather than distributed to its shareholders as dividends.
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