When there is a run up in stock prices
A. interest rates decrease.
B. inflation increases.
C. investment increases.
D. saving increases.
Answer: C
You might also like to view...
If the rate of inflation in a given time period turns out to be lower than lenders and borrowers anticipated, then the effect will be:
a. a redistribution of wealth from borrowers to lenders. b. a redistribution of wealth from lenders to borrowers. c. a net loss in purchasing power for lenders relative to borrowers. d. a net gain in purchasing power for borrowers relative to lenders.
_____ is a property which distinguishes corporations from proprietorships and partnerships
a. Unlimited liability b. Division of labor c. Separation of ownership and management d. Centralized management and control
Suppose in a certain city the demand for low-cost housing can be characterized by the equation P = 500 - 2Q, where Q is housing measured in square feet. Further, suppose that supply is characterized by the equation: P = 25 + 3Q. Suppose that the government feels that the grant is not enough and, in addition, imposes a price ceiling of $270. What will happen to consumer surplus? What are the drawbacks?
What will be an ideal response?
Queen City Sausage stock is selling at $40 per share, it has retained earnings of $1.00 per share, and dividends of $1.00 per share. What is the price-earnings ratio and what is the dividend yield?
a. 20, 2.5 percent. b. 20, 5 percent. c. 40, 2.5 percent. d. 40, 5 percent.