Figure 35-2 Use the Pair of Diagrams Below to Answer the Following

question 45

Multiple Choice

Figure 35-2
Use the pair of diagrams below to answer the following questions.
-Refer to Figure 35-2.If the economy starts at C and 1,then in the short run,an increase in the money supply growth rate moves the economy to

• A)A and 1
• B)B and 2
• C)C and 3
• D)None of the above is correct.

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Definitions:

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid in a given year and must be paid out before dividends can be distributed to common stockholders.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Dividends Received

Refers to the payments received by shareholders from a company's earnings, typically distributed periodically.

Dividend Record Date

The specific date set by a corporation's board of directors after which the shareholders on record will be entitled to receive the declared dividend.