Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please explain How does a decrease in stock prices affect the economy? 0 Lower stock prices create uncertainty about future economic growth and income 0

please explain

image text in transcribed
How does a decrease in stock prices affect the economy? 0 Lower stock prices create uncertainty about future economic growth and income 0 Households and firms often decrease spending in responce to lower stock prices 0 Lower stock prices affect a firm's ability to raise funds for investment. 0 All of the above. Question 2 (1 point) Some people say that preferred stock is more similar to bonds than to common stock. Check all the reasons why this is true C] Preferred stockholders get fixed dividend payments while common stockholders receive fluctuating dividend payments. C] Preferred stock represents partial ownership of a corporation while common stock does not. C] Preferred stockholders are less likely to get dividend payments during difficult financial times than common stockholders. C] If the corporation declares bankruptcy preferred stockholders are paid before common stockholders

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Great Convergence Information Technology And The New Globalization

Authors: Richard Baldwin

1st Edition

067466048X, 9780674660489

More Books

Students also viewed these Economics questions

Question

If z = x2y + yex2, find zyx |(1, 2).

Answered: 1 week ago