Stock prices may rise from a reduction in interest rates because:
A. financial market participants are less optimistic about future earnings.
B. stockholders will expect lower future earnings.
C. the present value of future earnings will decrease.
D. consumer and business confidence about future growth improves.
Answer: D
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Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing movies in the United States is ________, and the opportunity cost of producing movies in Switzerland is ________
A) 2 movies; 2 cuckoo clocks B) 2.5 movies; 0.4 cuckoo clocks C) 0.4 cuckoo clocks; 0.5 cuckoo clocks D) 2.5 cuckoo clocks; 2 cuckoo clocks
The money for Social Security payments to current retirees comes from
a. payroll taxes collected from those retirees when they were working. b. income taxes collected from the current working population. c. payroll taxes collected from the current working population. d. only the interest earned now by the government on the invested Social Security trust fund.