Exhibit 7-3 -Refer to Exhibit 7-3.Between 2004 and 2005,real GDP for This

question 151

Multiple Choice

Exhibit 7-3

-Refer to Exhibit 7-3.Between 2004 and 2005,real GDP for this nation

• A) increased by about $5 billion
• B) decreased by about $5 billion
• C) remained almost constant
• D) increased by about $2 billion
• E) cannot be determined from the information given

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Definitions:

Shares Outstanding

Shares outstanding refer to the total number of shares of a company’s stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares owned by the company’s officers and insiders.

Expectations Theory

A hypothesis in finance that the long-term interest rates reflect expected future short-term rates, adjusting for risk premium.

Dividend Distribution

The payment of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.

Signaling Effect

The notion that actions by a company can provide signals to investors and the market about its future prospects.