Differential Growth Refers to a fiRm That Increases Its Dividend

question 40

Multiple Choice

Differential growth refers to a firm that increases its dividend by:

• A)three or more percent per year.
• B)a rate which is most likely not sustainable over an extended period of time.
• C)a constant rate of two or more percent per year.
• D)€.10 or more per year.
• E)an amount in excess of €.10 a year.

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Definitions:

Cyclical Unemployment

Unemployment that results from business cycle fluctuations in the economy, typically increasing during recessions and decreasing during expansions.

Idle Capacity

The portion of a business's resources that is not being utilized to its full potential in production or service delivery.

Aggregate Supply Curve

Represents the total supply of goods and services that firms in an economy are willing to sell at a given price level in a certain time period.

Upward Slope

In economics, it typically represents an increase or positive trend in a graph, such as rising prices or increasing production over time.