If the P/E ratio is equal to 50, it implies that investors in the stock are willing to pay:
a. $25 for every $2 of the earnings that the company generates during a period.
b. $100 for every $1 of the earnings that the company generates during a period.
c. $500 for every $1 of the earnings that the company generates during a period.
d. $50 for every $1 of the earnings that the company generates during a period.
e. $5 for every $1 of the earnings that the company generates during a period.
d
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The economic growth rate is expressed as the
A) growth rate of real GDP minus the growth rate of population. B) growth rate of the population. C) standard of living. D) annual percentage change of real GDP per person. E) annual percentage change of real GDP.
What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed
A) 5.3 B) 10 C) 11.1 D) 100