A liquidity trap is a situation in which: A. using expansionary fiscal policy is not effective because, the budget is in a deficit. B. using expansionary monetary policy is not effective because, the nominal interest rate is almost zero. C. lenders are trapped by large loans with declining rates of return. D. using expansionary monetary policy is not effective, because the real interest rate is negative. E. aggregate demand falls, because consumers do not have enough liquidity to consume.

For the year, uptowne furniture had sales of $818,790, costs of $748,330, and interest paid of $24,450. the depreciation expense was $56,100 and the tax rate was 34 percent. at the beginning of the year, the firm had retained earnings of $172,270 and common stock of $260,000. at the end of the year, retained earnings was $158,713 and common stock was $280,000. any tax losses can be used. what is the amount of the dividends paid for the year? a. $6,466 b. $7,566 c. $5,266 d. $6,898 e. $7,066