The Clientele Effect Is the Effect of Investor Preferences for Dividends

question 56

True/False

The clientele effect is the effect of investor preferences for dividends or capital gains.

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Definitions:

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate, over a certain time frame.

Supply of Capital

The total resources, financial and otherwise, available for investment in production.

Dual Labor Market

describes an economy divided into two segments: a primary sector with secure, well-paid jobs, and a secondary sector with insecure, poorly paid jobs.

Primary Labor Market

Refers to jobs that provide high wages, benefits, job security, and opportunities for advancement.