The current share price of a corporation's stock is determined by the:
A. original purchase price multiplied by 1 plus the interest rate.
B. present value of capital gains and dividends received by stock owners.
C. expected interest and dividend payments.
D. expected capital gains and dividends prospective buyers will earn.
D. expected capital gains and dividends prospective buyers will earn.
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The length of time an unemployed person searches for a job is likely to increase as
A) the working age population gets older. B) new technologies make workers more productive. C) unemployment benefits become more generous. D) the birth rate declines. E) job rationing decreases.
During a deflationary period,
A) the price level rises. B) the nominal interest rate does not change. C) the nominal interest rate is less than the real interest rate. D) the real interest rate is less than the nominal interest rate.
The price a firm charges may be related to the time of the day when its product is consumed
Indicate whether the statement is true or false
Most studies indicate that the degree of income inequality in the United States has
a. been increasing in recent decades. b. been declining in recent decades. c. been constant since 1970. d. fluctuated widely from year to year.