Large swings in stock prices are usually caused by
A. A decrease in interest rates.
B. An increase in dividend payments by corporations.
C. Widespread changes in expectations.
D. A decrease in the supply of stocks.
Answer: C
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In a market economy, government decides the answers to the three economic decisions.
Answer the following statement true (T) or false (F)
Forward transactions would be useful to
A) a government wanting to know the size of its future debt. B) a household wanting to reduce its future tax liability. C) a business wanting to know the cost of its funds on future loans. D) a business wanting to expand its operations in overseas markets.
Both liberal and conservative economists believe that:
A. that people make choices without reasoning. B. economic incentives are important. C. people are little influenced by sociological effects. D. they have nothing in common.
moral hazard
What will be an ideal response?