A booming stock market is good for capital investment since
A) higher stock values now imply even higher stock values in the future
B) an increase in wealth increases investment spending
C) firms have an easier time raising equity capital
D) whenever stock market values go up, the economy is sure to follow
E) foreign capital will be attracted, raising interest rates
Correct Answer:
Verified
Q25: Assume the market interest rates stays at
Q26: Suppose a consol (a perpetual bond) that
Q27: Assume a two-year maturity bond with a
Q28: If you paid $6,000 for a two-year
Q29: If a consol (perpetual bond) pays $250
Q31: Assume the market interest rate is 5%
Q32: If the market interest rate is 10%,
Q33: Which of the following statements is FALSE?
A)returns
Q34: Assume a relative has promised to pay
Q35: Assume you would like to buy a
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