Stock prices tend to ________ when the Federal Reserve raises interest rates because higher interest rates ________ dividends.
A. fall; reduce
B. rise; reduce
C. fall; increase
D. rise; increase
Answer: A
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An increase in the interest rate will ________.
A. cause a move down along the money supply curve B. cause a move up along the money supply curve C. shift the money supply curve to the left D. shift the money supply curve to the right
Measured as a share of GDP, the net federal debt
a. increased during the 1990s, but fell sharply during 2001-2011. b. fell during most of the 1990s, but rose sharply during 2001-2011. c. was virtually unchanged during the 1990s, but fell sharply during 2001-2011. d. fell during the 1990s, but was virtually unchanged during 2001-2011.
Equilibrium in the market is where supply is equal to demand.
A. True B. False C. Uncertain
There are thousands of broadband internet providers in the country, while in a particular city the only way you can get it is through the phone, the cable company, or through DIRECTV. The best model to analyze this market is
A. monopoly. B. oligopoly. C. perfect competition. D. monopolistic competition.