If expected earnings of a company are revised upward and all else is equal, the price of a stock will
A. rise.
B. adjust to reflect a lower ratio of price to (current) earnings.
C. fall.
D. remain unchanged.
Answer: A
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Which of the following is not one of the functions of money?
A. Standard of well-being B. Unit of account C. Store of wealth D. Medium of exchange
Stocks change ________ whereas flows relate to ________.
A. within a given period of time; changes between points in time B. and that causes flows to change; changes that have no impact on stocks C. only at the end of each year; amounts at a given point in time D. between points in time; changes within a given time period
Carlos can buy either sushi or eggrolls. If the prices of sushi and eggrolls triple and so does Carlos's money income, we can deduce that Carlos's budget constraint will
A. swivel in so that the slope of the budget constraint is tripled. B. shift out but remain parallel to the old one. C. shift in but remain parallel to the old one. D. remain unchanged.
Discretionary policy calls for continual adjustments to the money supply and is associated with the monetarist perspective.
a. true b. false