Which of the Following Is Not True of a Change

question 93

Multiple Choice

Which of the following is not true of a change in dividend payments?

• A) There is no income effect because a change in dividend payments does not change a household's permanent income.
• B) There is no income effect because a change in dividend payments does not change the trade-off between work and leisure.
• C) There is no substitution effect because a change in dividend payments does not change a household's permanent income.
• D) all of the above

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Definitions:

Consequent

In a conditional statement, it refers to the outcome or result that follows from the fulfillment of a precedent condition.

Conditional

A type of logical statement that connects two statements in a cause-and-effect relationship, usually formulated as "if-then."

Biconditional

A logical statement indicating a true conditional statement and its converse are true; often represented by the phrase "if and only if".

Component

A part or element of a larger whole, especially in a mechanical or electronic system.