Historically,the Change in Real GDP During Recessions Has Been

question 13

Multiple Choice

Historically,the change in real GDP during recessions has been

• A)mostly a change in investment spending.
• B)mostly a change in consumption spending.
• C)about equally divided between consumption and investment spending.
• D)sometimes mostly a change in consumption and sometimes mostly a change in investment.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings in cash.

Corporation Liability

Legal and financial obligations a corporation owes to others, which can involve debts, lawsuits, or other claims against the business.

Restricted Retained Earnings

Portion of retained earnings that is not available for distribution as dividends to shareholders, often because of legal or contractual constraints.

Preferred Stock Dividends

Dividends that are paid out to holders of a company's preferred stock before any dividends are paid to common stockholders.