A decrease in interest rates can ________ the demand for stocks as stocks become relatively ________ attractive investments as compared to bonds
A) decrease; less
B) increase; more
C) decrease; more
D) increase; similar
E) increase; less
B
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According to Joseph Schumpeter, the success of capitalism relies on:
a. continuous, small improvements to existing products. b. "gales of creative destruction." c. careful government direction of the manufacturing sector. d. a strong agricultural sector to support the manufacturing workforce.
In order to maximize profits, a monopolist should produce where the average revenue is equal to marginal cost
a. True b. False Indicate whether the statement is true or false
A high demand for a company's stock is an indication that
a. the company is in need of funds. b. the company has recently sold a large quantity of bonds. c. people are optimistic about the company's future. d. people are pessimistic about the company's future.
If the required reserve ratio is 10 percent and a bank receives a deposit of $1,000, how much may the bank loan out?
A. $100 B. $200 C. $900 D. $300