A reduced risk premium __________ the discount factor in the stock price valuation formula, and __________ stock prices

A) raises; raises
B) raises; lowers
C) lowers; raises
D) lowers; lowers


C

Economics

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Monetary policy is ________ flexible than fiscal policy because monetary policy changes are made by ________, while fiscal policy changes must be made by ________.

A. more; the President; legislative action B. more; legislative action; the FOMC C. more; the FOMC; legislative action D. less; the FOMC; the President

Economics

In a command economy, decisions about how to allocate resources are made: a. based upon tradition

b. by a central planning board. c. by individuals and firms interacting in markets coordinated by a price system. d. by a lottery system.

Economics

Why does Philip Morris produce so many different kinds of cigarettes?

Economics

Which of the following conditions distinguishes the monopolistic competitor from the monopolist?

a. profit-maximizing rule b. downward slope of demand curve c. entry of rivals d. short-run economic profits

Economics