If the expected future price of a stock is revised downward and all else is equal, today's price of the stock will
A. fall.
B. remain unchanged.
C. rise.
D. adjust to reflect a higher ratio of price to (current) earnings.
Answer: A
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According to the textbook, when claim they are using the cost-plus-markup formula, they
A) usually choose a 10 percent markup B) usually choose a 50 percent markup C) usually choose a 100 percent markup D) might not be correctly describing their price-setting behavior.
Commercial banks are able to create money by
A) printing Federal Reserve Notes. B) making loans. C) making customers pay back their loans. D) exchanging their reserves at the Fed for currency.
Explain how unemployment changes over the business cycle. Why do these changes occur?
What will be an ideal response?
When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus
a. True b. False Indicate whether the statement is true or false