According to the Gordon-Growth model, which of the following can cause the value of a stock to decline?
A) higher expected growth rate of dividends
B) increase in the current dividend
C) increased systemic risk
D) decreased required return on equity
C
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In the above figure, at any price between $8 per unit to $12 per unit, how many units will a profit-maximizing perfectly competitive firm produce?
A) None, because the producer will never choose to operate at a loss. B) Less than 20 because this will reduce marginal cost. C) Between 20 and 30, because variable costs are covered so the firm's losses will be minimized by producing rather than shutting down. D) More than 30, because variable costs are covered so that the producer can earn economic profits.
Comment on the following statement: "An increase in the wage always leads to an increase in the quantity of labor supplied."
What will be an ideal response?
When is policy convergence, also known as Downsian policy convergence, likely to occur among political parties?
What will be an ideal response?
Strategic trade policy relies on threats of protectionism to protect free trade
a. True b. False Indicate whether the statement is true or false