Which of the following would be most likely to cause the price/earnings ratio of stocks to rise?
a. the expectation of a recession in the near future
b. the expectation of inflation in the near future
c. higher interest rates
d. lower interest rates
D
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The imaginary figure who advises us whether society is making the most of its scarce resources is the
A) opportunity-cost pixie. B) benevolent social planner. C) scarcity goddess. D) compassionate dictator.
It is difficult to get the necessary information to apply corrective taxes in the real world, thus _____
a. most government reluctantly apply to reduce negative externalities b. use regulation to reduce negative externalities c. use moral suasion to reduce negative externalities d. most governments fail to do anything to reduce negative externalities
A Big Mac costs $4.00 in Canada and 9.00 reals in Brazil. If the exchange rate is 2 reals per dollar, what is the dollar cost of a Big Mac in Brazil?
A) $0.89 B) $2.25 C) $4.50 D) $8.00
From 1980 to 2000, the expected inflation rate in the United States declined by about
A. 1 percentage point. B. 7 percentage points. C. 3 percentage points. D. 5 percentage points.