An automobile manufacturer unexpectedly announces that it has hired a new chief executive officer. It is widely believed that the presence of this individual will raise the profitability of the corporation. At the same time interest rates unexpectedly rise. Which of the above would tend to make the price of the stock rise?
a. the announcement and the rise in interest rates
b. the announcement but not the rise in interest rates
c. the rise in interest rates, but not the announcement
d. neither the announcement nor the rise in interest rates
b
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From the Civil War up to 1914, the United States adhered to a
A) gold standard. B) silver standard. C) bimetallic standard. D) bronze standard. E) copper standard.
An appreciation of the domestic currency can be caused by ________
A) a decrease in the domestic interest rate B) an increase in the domestic interest rate and expectation of an increase in the value of the domestic currency C) an increase in the domestic interest rate and the expectation of a decrease in the value of the domestic currency D) the expectation of a decrease in the value of the domestic currency
The notion that a decline in tax rates and other incentives will spur individuals and firms to increase productivity is typically referred to as
A) demand-side economics. B) Ricardian equivalence. C) supply-side economics. D) Keynesian economics.
Which of the following is an example of a fixed cost for a fishing company?
a. the cost of hiring a fishing crew b. the fuel costs of running the boat c. the monthly loan payment on the boat d. the supply of nets, hooks, and fishing lines e. the bait