If interest rates rise and all else is equal, the price of a stock will
A. fall.
B. remain unchanged.
C. adjust to reflect a higher ratio of price to (current) earnings.
D. rise.
Answer: A
You might also like to view...
The tools of monetary policy are
A) government spending, tax rates, and the required reserve ratio. B) open market operations, differential between the discount rate and the federal funds rate, and the required reserve ratio. C) open market operations, differential between the discount rate and the federal funds rate, and tax rates. D) open market operations, government spending, and the required reserve ratio.
Which of the following is an example of a carrying cost of holding an inventory?
A) the cost of the paperwork necessary to pay for each order B) the delivery charges for an order C) the managerial time spent creating an order for inventory D) the costs of securing the inventory
The goal of expansionary fiscal policy with respect to output is to:
A. increase spending and shift aggregate demand to the right in an effort to reach full employment output. B. increase spending and aggregate demand to get back to an output level the government is comfortable with. C. decrease government spending in an attempt to get the private economy back on track. D. increase spending and shift aggregate demand to the left in an effort to reach full employment output.
A binding minimum wage creates a surplus of labor
a. True b. False Indicate whether the statement is true or false