Figure 21-1 -Redistribution Programs That Reduce Poverty and Income Inequality

question 144

Multiple Choice

Figure 21-1
-Redistribution programs that reduce poverty and income inequality

• A)always increase GDP.
• B)always decrease GDP.
• C)usually increase GDP.
• D)usually decrease GDP.

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Definitions:

Annual Payments

The amounts that need to be paid once every year as part of a financial obligation.

EAR

Effective Annual Rate, a representation of an interest rate that takes into account the compounding of interest, shown as an annual rate.

Preferred Stock

A type of stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.

Dividend

A portion of a company's earnings that is distributed to shareholders, typically in the form of cash payments or additional shares.