The PE ratio for a stock is
A) the predicted earnings per share of the stock divided by its current yield.
B) the current yield of the stock.
C) the price of the stock divided by its earnings per share.
D) the predicted volatility of the stock.
Answer: C
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The spending multiplier measures the change in equilibrium income that results from a change in:
a. consumption. b. interest rates. c. savings. d. net exports. e. autonomous expenditures.
Consumer surplus is the difference between the most a person is willing to pay and market price.
Answer the following statement true (T) or false (F)
Jack wants to buy a new house. But the surge in housing demand over the last few months has led to a sharp increase in housing prices making it impossible for him to afford one on his current income. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) conspicuous externality
How has the financing of elementary and secondary education changed in the United States since 1940? What is the primary reason for this trend?
What will be an ideal response?