A Decrease in Consumer Confidence Can Put Your Job at Risk

question 204

Multiple Choice

A decrease in consumer confidence can put your job at risk if

• A)aggregate expenditures fall.
• B)consumers expect their incomes to rise in the future.
• C)aggregate expenditures rise.
• D)consumers expect firms to increase investment in the future.

---

Definitions:

Nonparticipating

In the context of financial securities, refers to preferred shares or other financial instruments that do not have the right to share in the corporation's earnings beyond a certain amount.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the number of shares owned by shareholders.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.