Whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing ()
A. a conjectural mistake.
B. a fundamental mishap.
C. a speculative bubble.
D. a neuroeconomic flaw.
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The value of a stock is based on the ()
A. present values of the dividend stream and final price. So, the value of a stock rises when interest rates rise.
B. present values of the dividend stream and final price. So, the value of a stock falls when interest rates rise.
C. future values of the dividend stream and final price. So, the value of a stock rises when interest rates rises.
D. future values of the dividend stream and final price. So, the value of a stock falls when interest rates rise.
Most financial decisions involve two related elements: ()
A. advice and consent.
B. investment and taxes.
C. time and risk.
D. saving and consumption.
The source of the supply of loanable funds()
A. is saving and the source of demand for loanable funds is investment.
B. is investment and the source of demand for loanable funds is saving.
C. and the demand for loanable funds is saving.
D. and the demand for loanable funds is investment.
Other things the same, a higher interest rate induces people to()
A. save more, so the supply of loanable funds slopes upward.
B. save less, so the supply of loanable funds slopes downward.
C. invest more, so the supply of loanable funds slopes upward.
D. invest less, so the supply of loanable funds slopes downward.
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