Using the Gordon growth model, a stock's current price will increase if
A) the dividend growth rate increases.
B) the growth rate of dividends falls.
C) the required rate of return on equity rises.
D) the expected sales price rises.
A
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Which of the following best explains why many US economists support free international trade?
(a) Workers who lose their jobs can collect unemployment compensation (b) It is more important to reduce world inflation than to reduce US unemployment (c) Workers are not affected; only businesses suffer (d) The long-run gains to consumers and some producers exceed the losses to other producers (e) Government can protect US industries while encouraging free trade
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1
If the price of food is $3, does a competitive equilibrium exist? If not, what will happen to the price of food?