Stock prices increase when expected future dividends ________, interest rates ________, and/or the risk premium ________.
A. decrease; decrease; increases
B. increase; increase; increases
C. increase; increase; decreases
D. increase; decrease; decreases
Answer: D
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If firms and workers have adaptive expectations, what impact will contractionary monetary policy have on inflation, unemployment, and the Phillips curve?
What will be an ideal response?
If a nation specializes in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to:
a. have a higher standard of living for its citizens than it would if it did not specialize and then trade. b. have a lower standard of living for its citizens than it would if it did not specialize and then trade. c. create as much wealth for its citizens as it could if it did not specialize and then trade. d. benefit in the short run but incur heavy loss in the long run. e. incur heavy loss in the short run and eventually cease production in the long run.
It takes more money to purchase the same amount of goods when prices _____. Therefore, the value of your money has ____
Fill in the blank(s) with correct word
Some of the crowding out of private expenditures may come in the form of
A) an increase in consumption. B) an increase in net exports. C) a decrease in taxes. D) a decrease in net exports.