The main reason for the rising market value of corporate stock is
A) falling interest rates.
B) changes in tax laws.
C) increases in the prices of existing stock.
D) the increased supply of new stock.
C
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Give an example of how a hypothetical firm can use advertising to convey the quality of its product.
What will be an ideal response?
We observe a market where the price has risen and the quantity being sold has declined. This could be caused by a(n):
a. Increase in demand b. Increase in supply c. Decrease in demand d. Decrease in supply
In the 1970s and 1980s, savings banks invented NOW accounts to get around financial regulations. This is an example of:
A. quantitative easing. B. a moral hazard problem. C. deleveraging. D. the law of diminishing control.
Assume that expected inflation is based on the following: ?et = ??t-1. If ? = 0, we know that
A) a reduction in the unemployment rate will have no effect on inflation. B) low rates of unemployment will cause steadily increasing rates of inflation. C) high rates of unemployment will cause steadily declining rates of inflation. D) the Phillips curve illustrates the relationship between the level of inflation rate and the level of the unemployment rate.