Studies Show That Dividend Initiations and Omissions Generally

question 38

Multiple Choice

Studies show that dividend initiations and omissions generally

• A) do not reflect changes in earnings in the recent past.
• B) are not based on recent earnings changes, but do signal a one year earnings change.
• C) signal permanent changes in earnings levels.
• D) do not signal any future changes in short-term earnings.

---

Definitions:

Aggregate Expenditures

The total amount of spending on goods and services in an economy at a given overall price level and in a given time period.

Spending Multiplier

the ratio of the change in total national income to the initial change in spending that brought it about, illustrating how initial spending leads to increased total spending in an economy.

Aggregate Spending

Aggregate spending is the total amount of spending in an economy, including consumption, investment, government expenditures, and net exports during a specific period.

Autonomous Saving

The portion of savings of an economy that is independent of income levels, often related to baseline savings by consumers and companies.