During 1982-1997, stock prices increased substantially. Which of the following helped to boost stock prices during this period?
a. higher interest rates and rapid growth of corporate profits
b. lower interest rates and rapid growth of corporate profits
c. higher interest rates and slow growth of corporate profits
d. lower interest rates and slow growth of corporate profits
B
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You notice that when interest rates increases, new residential housing prices tend to decrease. This observation indicates that
A) there must be false causality between interest rates and housing prices. B) higher interest rates must cause low housing prices. C) a scatter diagram between interest rates and housing prices will show a negative relationshi
Which of the following is necessary for a market to be deemed "perfectly competitive"?
A) All firms are price searchers. B) All participants enjoy full and complete information. C) Sellers produce of different quality, durability, and desirability. D) All of the above are necessary. E) None of the above are necessary.