A Rising P/E Ratio Could Be Explained By

question 37

Multiple Choice

A rising P/E ratio could be explained by:

• A)a decline in the Dow Jones Industrial Average.
• B)an increase in inflation.
• C)a fall in expected earnings.
• D)irrational exuberance.

Understand the importance of continuous improvement philosophies like Kaizen in organizational settings.

Analyze the role of social media and aspirational labor in personal branding and employment.

Understand the concept of mass production in modern organizations.

Recognize the importance of employee participation in decision making for enhancing organizational productivity.

---

Definitions:

Marginal Propensity

The ratio of a change in consumption (or saving) to a change in income, indicating how much of an income change individuals will spend or save.

Disposable Income

The amount of money available for savings or expenditure after all taxes and social security fees have been deducted.

Induced Consumption

Consumption that changes in response to changes in income or wealth, as opposed to autonomous consumption, which does not change when income changes.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been deducted.