If the marginal propensity to consume (MPC) equals 0.9, the multiplier is _____
a. 1
b. 2
c. 5
d. 10
e. 12
d
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The prime rate is the interest rate at which banks can borrow from the Fed
Indicate whether the statement is true or false
If a perfectly competitive firm's marginal revenue is greater than its marginal cost, as it increases its output, its profit ________ and the price it can charge for its product ________
A) increases; does not change B) decreases; falls C) increases; falls D) decreases; rises E) decreases; does not change
Dividends are
A) payments by a corporation to its shareholders. B) financial securities which represent ownership in a corporation. C) the interest rate paid on shares of stock. D) the yearly payments associated with bonds.
Camp Company had total earnings of $600 million in 2013, out of which it retained 20 percent for future investments. In 2013, its stock featured a dividend yield of 4 percent and 100 million shares were outstanding. The price-earnings ratio for Camp Company stock was
a. 5. b. 150. c. 20. d. 25.