Figure 4.1 Determinants

question 36

Multiple Choice

Figure 4.1
Determinants
of k/k
-In Figure 4.1 if the saving rate increases, then

• A)the curve s + n increases.
• B)the curve s + n becomes steeper.
• C)the curve s + n decreases.
• D)the curve s + n becomes flatter.

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Definitions:

Subsidiary

A company that is controlled by another company, known as a parent company, through the ownership of more than half of its voting stock.

Stock Dividend

A distribution of extra shares to shareholders, as opposed to a cash payment, as a form of dividend.

Common Stock

A type of equity security that represents ownership in a corporation, usually carrying voting rights and potential dividends.

Consolidation Process

The procedure of combining the financial statements of two or more entities into one, usually for a parent company and its subsidiaries.