Exam 13: Economy Market Analysis

If the economy is prospering,investors expect corporate earnings to rise.

Stock prices have almost always risen as the business cycle is approaching a trough.

How does the increased globalization of business and finance affect business cycles and the leading,lagging,and coincident economic indicators?

Assuming a constant P/E ratio,the growth in stock prices should equal the growth in earnings.

P/E ratios are generally depressed when interest rates:

In the early stages of a business cycle,the yield curve is usually:

Why do stock investors pay attention to the bond market?

Which of the following are the two components of the Fed's dual mandate?

Warren Buffett thinks long-term movements in stock prices are caused by which of the following two economic variables?

Over the past 30 years,the average P/E ratio for the S&P 500 has been 20.

Assume the dividend payout ratio on the S&P 500 is 40 percent when the rate on long-term T-bonds is 9 percent,and investors demand an equity risk premium of 8 percent.If the growth rate of dividends is expected to be 10 percent,what is the price of the market index if the earnings expectation is $30?

The National Bureau of Economic Research (NBER)is:

Which of the following is a publication that compiles consensus economic forecasts?

The advance estimate by the Bureau of Economic Analysis predicts direction of quarterly change in real GDP growth approximately what percent of the time?

When investors say that "the market" is up,they are usually referring to:

The period from a peak to a trough in economic activity is:

In the U.S. ,since the end of World War II,the typical business cycle consists of an expansion of how many months?

P/E ratios are generally low when interest rates and inflation are high.

Historically,the average revision in the Bureau of Economic Analysis' GDP growth rate forecast from its advance to final estimate has been approximately:

If interest rates rise,the risk-free rate declines.