In the Classical Theory of the Employment an Increase in the Rate

question 183

Short Answer

In the classical theory of the employment an increase in the rate of interest will ______ savings and ________ investment.

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Definitions:

Dividend Payout

The portion of a company's earnings distributed to shareholders in the form of dividends.

High Dividend Payout

This term refers to companies that return a large portion of their earnings to shareholders in the form of dividends.

Bond Indenture

A legal contract specifying the terms and conditions under which a bond has been issued, including the interest rate and maturity date.

Restricted

Pertains to assets or securities that are not fully transferable until certain conditions have been met, often used in reference to stocks.