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QUESTION

Read the article in Unit 3 entitled "Nudging the

Read the article in Unit 3 entitled "Nudging the Needle". Using your tools of macroeconomic analysis, determine what would happen if more companies followed Microsoft's lead and offered dividends. Based on what you know about the nature of the macroeconomy, do you believe that more dividend income could sway the GDP numbers? Why or why not?

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    * stock ******** is * **** ******* made ** shareholders ***** * ***** ****** of **** ******* ********* Dividends *** **** ** be ******** ******* *** *** reason that ********* ******* them ***** ***** ******* the ***** ******** growth ******* an ******** ** **** *** ie ******** ****** *** national income ** ******** ** *** *** ****** be ****** ** ** increase ** ********* demand **** ** ** ******** ** ********* ****** ********* ******* Upon receiving dividends some ****** ******** their ******** ******** **** **** *** ***** market ***** ****** choose to *** it ** * supplement ** ***** discretionary ****** ******* boosting their ********** power

    Dividend

    ******** can ****** *** ******* an increase ** ********* ****** If **** ********* **** to ****** in *** ***** ** ********* *** ***** dividends ** its ****** ******* ******** **** the ********* ****** to consume ***** ******** ******** the ****** would be ********* *** * ****** company *** ****** may *** ** ***** ****** to cause ********* *** ** more ***** ********* **** ** ****** **** **** **** kind ** ******* **** *** ******* *** **** ********** *********** inflation Demand-pull ********* occurs **** aggregate ****** ** ** economy grows ****** **** ********* ****** ******** ******** ******** ************* ****** ** ********* thereby ********** ***** purchasing ***** and ******** ********** ***** encourages ******** spending ********* consumer ******** ***** to ** ******** ** aggregate ****** If aggregate ****** ******** ********* ****** *** **** ** **** money ******* ***** goods will occur prices **** escalate Demand-pull ********* ********** ** ******** ** GDP **** ** *** **** *** because *** ****** demand ***** ********** market ********** will ******** ********** *** ********* ********* ** *** ******* ******* ** **** *** excess ****** ** increasing ****** ********* ************ ******** ****** ***** **** more ******* to increase ********** *** **** ** *** extra hiring ***** onto *** ********* in *** form ** ****** ****** ******* *** firms ** *** **** ** ******** their ******* ****** consumer prices leads to inflation ******* an increase ** *** *** ** ** ******** ** ********* output **

    the

    **** ***** ********* ****** ** ******** ***** dividend payments back into *** ***** ****** *** ********* amount ** all dividend ******** from *** ******* ************ ** *** country could just **** to ***** ****** escalating ** *** ******* ********* * dividend ******* **** ** higher or ***** than ******** ****** ********* may ****** ******* *** stock ****** ** rise ** **** accordingly ******** ******** ******* a ****** ** additional ********** income ***** ********** investors ** ****** ****** ** stock *** ******** *** ****** ** ********* ****** **** ****** ** a ******* *** prices ** the stocks increase ******** **** corporate ******* *** *** company ********* *** ***** *** ****** ********** **** ************

    **

    employees + ***** ******** + ****************** ****** * ********* ******* + indirect ******** taxes * ************ * Net ******* ****** income ********* ** ********

    **

    corporate profits ********* ** GDP In ********** ** more

    *********

    are offered ** *** ******* public *** ****** to ******* ** ********* demand ********* ***** increases ********* ****** *** ** ********* ********** ***** leads ** an ******** ** *** In *** ***** *** ********* **** ****** from demand-pull inflation which ** the **** *** will be ***** **** ** ** the increase ** ****** ********** ** *** ********* ****** to reinvest *** ******** payout ***** ****** will ******** due to ********* demand ** ******** in ***** ****** leads ** ** ******** in * *************** ******** **** ********* *** ********* ****** ** ********* ******* ********* ********** ***

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