X hits on this document

108 views

0 shares

2 downloads

0 comments

8 / 27

244 Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh Edition

35)

A monetary contraction _____ stock prices due to a decrease in the _____ and an increase in the _____.

(a)

increases; dividend growth rate; required rate of return

(b)

increases; current dividend; future sales price

(c)

reduces; required rate of return; dividend growth rate

(d)

reduces; dividend growth rate; required rate of return

(e)

reduces; dividend growth rate; future sales price

Answer:

Question Status: New

36)

Terrorist attacks on the United States caused a(n)

(a)

decrease in stock prices due to lower expected growth and greater risk.

(b)

decrease in stock prices due to lower expected dividend growth and reduced uncertainty.

(c)

decrease in stock prices due to lower future sales prices.

(d)

increase in stock prices due to higher expected dividend growth.

(e)

increase in stock prices due to an increased required return.

Answer:

Question Status: New

37)

An increase in uncertainty due to threat of war will

(a)

increase stock prices due to a higher required return.

(b)

not affect stock prices.

(c)

increase stock prices due to a lower required return.

(d)

depress stock prices due to a higher required return.

(e)

depress stock prices due to a lower required return.

Answer:

Question Status: New

38)

Dishonest corporate accounting procedures caused stock prices to

(a)

remain unchanged.

(b)

decrease due to lower expected dividend growth and lower required return.

(c)

decrease due to lower expected dividend growth and higher required return.

(d)

increase due to higher expected dividend growth and lower required return.

(e)

increase due to higher expected dividend growth and higher future sales price.

Answer:

Question Status: New

39)

Economists have focused more attention on the formation of expectations in recent years. This increase in interest can probably best be explained by the recognition that

(a)

expectations influence the behavior of participants in the economy and thus have a major impact on economic activity.

(b)

expectations influence only a few individuals, have little impact on the overall economy, but can have important effects on a few markets.

(c)

expectations influence many individuals, have little impact on the overall economy, but can have distributional effects.

(d)

models that ignore expectations have little predictive power, even in the short run.

Answer:

Document info
Document views108
Page views114
Page last viewedSat Dec 03 20:02:48 UTC 2016
Pages27
Paragraphs1683
Words7804

Comments