QUESTION 9 The price of a stock will increase, ceteris paribus, when: Future earnings expectations decrease. Future earnings expectations increase. The interest rate increases. Terrorists cause people to be fearful. QUESTION 10 The primary economic role of financial markets is to: Gain profits for investors. Allocate resources to profitable businesses and away from businesses with losses. Earn dividends for shareholders. Provide the federal government with a source of loanable funds when it has a budget deficit