Stock prices may rise from a reduction in interest rates because:
A. the present value of future earnings will increase.
B. financial market participants are less optimistic about future earnings.
C. the present value of future earnings will decrease.
D. stockholders will expect lower future earnings.
Answer: A
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How are the products sold by a monopolistically competitive firm different from the products sold in a competitive market?
What will be an ideal response?
The demand for money is a relationship between: a. the price level and the amount of cyclical unemployment
b. the price level and the actual output produced in an economy. c. the interest rate and how much money people choose to hold. d. the interest rate and how much money people earn during a certain time period. e. the interest rate and the rate of inflation.
When prices of products are set below equilibrium,
A. society’s resources are inefficiently allocated. B. firms expand output to increase profits. C. firms earn excessively high profits. D. consumers benefit from surpluses of cheap goods.
Schooling and other types of training
a. are regarded as investment in human capital. b. are an important cause of income differentials. c. involve workers' sacrificing current income in order to enjoy higher future income. d. All of the above are correct.