Investors should be willing to pay more for a stock when (controlling for all other things):
a. Future interest rates are expected to increase.
b. Future interest rates are expected to decrease.
c. Future dividends are expected to decrease.
b. Future interest rates are expected to decrease.
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Total expenditure equals total income
A) if firms do not save for future investment. B) if firms earn zero profit. C) because firms pay out everything they receive as income to the factors of production. D) only if net taxes equals government expenditures on goods and services. E) only if firms sell all the goods they produce in a given time period.
Which of the following are short-term financial instruments?
A) a repurchase agreement B) a share of Walt Disney Corporation stock C) a Treasury note with a maturity of four years D) a residential mortgage