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The Effect of a Decrease in the Price of Personal

question 38

Multiple Choice

The effect of a decrease in the price of personal computers on consumer demand,other things constant,is most likely to be represented by a:


Definitions:

Excess Cash

Funds that exceed the normal operating needs of a company, potentially available for investment or distribution to shareholders.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from its total revenue.

Stock Dividend

A payment to shareholders in the form of additional shares instead of cash.

Retained Earnings

Retained earnings refer to the portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

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