Stock in Frozen Dreams, an ice cream manufacturer, has a price to earnings ratio of 24 . Is this comparatively high or low? What are two explanations for the size of this company's price to earnings ratio?
Its price to earnings ratio is comparatively high. It may be that people expect its earnings to rise or that the stock is overvalued.
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Assume that the ratio of excess reserves to demand deposits is 0, and the ratio of currency to demand deposits is .2. If the reserve requirement on demand deposits is .3 and there is no reserve requirement on savings accounts, the M1 multiplier is
A) 5.5. B) 4. C) 2.5. D) 2.4.
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. The ________ is the ratio of the marginal utility of ice cream cones to the marginal utility of ice cream sandwiches.
A. maximum number of ice cream cones that can be purchased B. maximum number of ice cream sandwiches that can be purchased C. slope of the indifference curve D. slope of the budget constraint