Which of the Following Statements Is False

question 92

Multiple Choice

Which of the following statements is false?

• A) Studies show that developing nations that have relied on import restrictions to protect domestic industries have had higher growth rates than similar nations pursuing more open
• Economic policies.
• B) The U.S. Constitution forbids individual states from levying tariffs.
• C) The high tariffs of the Smoot-Hawley Act of 1930 and the retaliation they caused worsened the Great Depression.
• D) The European Union has enhanced prosperity in Western Europe.

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Definitions:

Homemade Dividends

The concept that investors can create their own dividend policy by selling a portion of their portfolio of equities, instead of relying on the company's dividend payments.

Dividend Payout

The part of a company's profits that is paid out to shareholders as dividends.

Corporate Dividend

The distribution of a portion of a company's earnings, decided by the board of directors, to its shareholders.

Stock Repurchase

A stock repurchase is a program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.