Which of the Following Is Most Important If a Country

question 82

Multiple Choice

Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

• A) large government expenditures as a share of GDP
• B) institutions and policies that are supportive of competition (open markets) and freedom of exchange.
• C) free elections and political democracy
• D) monetary policy makers who are willing to expand the supply of money rapidly

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Definitions:

Future Dividends

Future Dividends refer to dividend payments that a company is expected to issue to its shareholders in the future, based on its earnings and dividend policy.

Residual Dividend Policy

A residual dividend policy involves a company paying out dividends from the leftover net income after all operational and project financing needs are met.

Rate of Growth

The pace at which a company, economy, or investment increases in size or value over a specific period.

Constant Dividends

A fixed amount of dividend that a company pays out to its shareholders regularly, typically annually.