Is the stock of a corporation with an excellent earnings record likely to be a better buy than the stock of a corporation doing very badly?
A) No, because the price of each stock will reflect differing situations.
B) Only if their different earnings records have persisted for several years.
C) Yes, because stocks with large dividend returns to owners are always good buys.
D) Yes, because the future is more likely to resemble the past than to differ from it in any systematic way.
A
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The Fed's forward guidance in late 2012 through mid-2015 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
What happens to the market outcome if cartel members cheat on the collusive agreement?
A) Price declines, but firm-level quantities remain the same because the firms act like price takers B) Price and quantity revert to the single-seller monopoly equilibrium outcome C) Other firms raise prices so that the average market price remains unchanged D) Price declines and quantity increases toward the perfectly competitive equilibrium