(Advanced Analysis)Assume the Saving Schedule for a Private Closed Economy

question 68

Multiple Choice

(Advanced analysis) Assume the saving schedule for a private closed economy is S = -20 + .2Y,where S is saving and Y is gross domestic product.The multiplier for this economy is:

• A) 3.
• B) 4.
• C) 5.
• D) 10.

---

Definitions:

Dividend Rate

The amount of dividend that a company pays out to its shareholders annually, usually expressed as a percentage of the stock's current market price or as a fixed amount per share.

Authorized Shares

Authorized shares refer to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.

Redemption Value

The value at which a bond or other debt instrument can be redeemed before maturity, typically at face value.

Dividends in Arrears

These are dividends on cumulative preferred stock that have not been paid in the period they were due, accumulating until they are paid out.