The Recessions of the 1970s Are Often Attributed to

question 7

Multiple Choice

The recessions of the 1970s are often attributed to

• A)declining inflation expectations.
• B)an increase in oil prices.
• C)declines in the price of stock.
• D)decreases in the money supply.

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Definitions:

Retained Earnings Account

An equity account on the balance sheet that represents the accumulated net income of a company that has not been distributed to shareholders as dividends.

Dividends Account

An account in the ledger that records dividends paid out to shareholders by a company.

Retained Earnings Account

An equity account that represents the accumulated portion of net income not distributed to shareholders in the form of dividends.

Current Ratio

A financial liquidity metric that compares a company's current assets to its current liabilities, used to evaluate its ability to pay short-term obligations.