A key point made by the Gordon-Growth model is that the
A) value of a stock depends on investor's expectations about the future profitability of a firm.
B) past trends in a stock's behavior indicate future price trends.
C) dividends have little to do with a stock's value.
D) risk has little effect on a stock's value.
A
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Most economists are opposed to the "living wage" concept in foreign labor agreements because:
a. it is barely enough for survival. b. most workers in low-income nations already earn more. c. workers should never earn more than the managers. d. it is well above the market wage, and many workers in poor nations would lose the opportunity to be employed.
If the economy is currently in equilibrium at a level of GDP that is below potential GDP, which of the following would move the economy back to potential GDP?
A) an increase in the value of the dollar relative to other currencies B) a decrease in business confidence C) an increase in wealth D) an increase in interest rates