During 1982-1997, stock prices increased substantially. Which of the following helped to boost stock prices during this period?
a. higher interest rates and rapid growth of corporate profits
b. lower interest rates and rapid growth of corporate profits
c. higher interest rates and slow growth of corporate profits
d. lower interest rates and slow growth of corporate profits
B
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Why does the absence of well-defined property rights serve as a stumbling block for the application of the Coase theorem?
What will be an ideal response?
The human costs of unemployment are
a. insignificant b. not as important as the economic costs of unemployment c. equal to the economic costs of unemployment d. not measured in dollars, but are extremely important considerations e. the opportunity cost of lost output
In the short run, movements in exchange rates are caused largely by economic fluctuations
a. True b. False
A mutual fund
a. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds. b. is funds set aside by local governments to lend to small firms who want to invest in projects that are mutually beneficial to the firm and community. c. sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit. d. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds.