If Total Spending Is Greater Than the Value of Output

question 81

Multiple Choice

If total spending is greater than the value of output, firms will

• A)cut prices.
• B)decrease production levels.
• C)tend to raise prices.
• D)see inventories rise.

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Definitions:

Dividends Paid

The total amount of dividends that a company has returned to its shareholders from its net income.

Voting Shares

Equity securities granting holders the prerogative to vote on corporate decisions and board member selections.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders as a return on their investment in the company's equity.

Voting Shares

Voting shares that enable the owner to have a say in corporate affairs, such as the selection of the board of directors.