Select the Normative  Statement That Completes the Sentence: If Wages

question 1

Multiple Choice

Select the normative  statement that completes the sentence: If wages rise more rapidly than productivity:

• A) profits will fall.
• B) workers will earn 3/4 of GDP.
• C) the rate of inflation increases.
• D) policymakers should impose a wage ceiling.

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Definitions:

Homemade Dividend

A strategy where investors create their own dividend stream by selling a portion of their portfolio of equities, as opposed to relying on company-issued dividends.

Ex-Dividend Date

The date on which a stock begins trading without the right to receive the next declared dividend, typically set one business day before the record date.

Convertible Bonds

Convertible bonds are a type of debt security that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.

Dividend Payment

The distribution of a portion of a company’s earnings to its shareholders, usually in cash or as additional stock.