Bay City Mining, Inc has a price of $20 a share, outstanding shares of 2.5 million, retained earnings of $1 million dollars, and a dividend yield of 2 percent. It has a price-earnings ratio of
a. 50, which is high by historical standards.
b. 50, which is low by historical standards.
c. 25, which is high by historical standards.
d. 25, which is low by historical standards.
c
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The Fed's lender-of-last-resort function
A) has proven to be ineffective. B) cannot prevent runs by large depositors. C) is no longer necessary due to FDIC insurance. D) creates a moral hazard problem.
One example of gradualism is taking place in
a. China b. the United Nations c. New Zealand d. Japan e. France
A ration coupon is generally used
a. to allocate the excess supply of a good b. if a price floor is imposed on a market c. to limit the supply of a good d. if there is an excess supply e. to allocate the good under conditions of excess demand
At the equilibrium real interest rate in the open-economy macroeconomic model
a. saving = domestic investment b. saving = net capital outflow c. net capital outflow = domestic investment d. net capital outflow + domestic investment = saving