When Real GDP Decreases, the

question 81

Multiple Choice

When real GDP decreases, the

• A) quantity demanded of money decreases.
• B) quantity demanded of money increases.
• C) opportunity cost of holding money decreases.
• D) demand for money decreases.
• E) demand for money increases.

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Definitions:

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders instead of paying a cash dividend.

Stockholders' Equity

Stockholders' equity represents the ownership interest of shareholders in the corporation, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts that a company owes to external parties.