In General,as the Economy Expands or Contracts Over the Business

question 8

Multiple Choice

In general,as the economy expands or contracts over the business cycle

• A) prices change rapidly
• B) prices remain unchanged except in a recession
• C) prices remain unchanged until the economy reaches full employment
• D) prices change, but slowly

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Definitions:

Repurchase

The action of buying back previously sold shares or goods, often by the company that issued or sold them initially.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with dividends that are paid out before those to shareholders of common stock.

Common Stock

Common stock is a type of equity ownership in a corporation, representing a claim on part of the company's profits and conferring voting rights.