Other Things the Same, as the Price Level Decreases It

question 28

Multiple Choice

Other things the same, as the price level decreases it induces greater spending on

• A)both net exports and investment.
• B)net exports but not investment.
• C)investment but not net exports.
• D)neither net exports nor investment.

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Definitions:

Common Stock

Equity shares issued by a corporation as ownership evidence, granting voting rights and a share in the company's profits.

Dividends Payable

Liabilities on a company's balance sheet representing the amount of dividends declared by the board of directors but not yet paid to shareholders.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

is the portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or debt payment.