The ________ States That the Main Source of Economic Fluctuations

question 42

Multiple Choice

The ________ states that the main source of economic fluctuations is volatile business confidence.

• A) real business cycle theory
• B) new classical cycle theory
• C) Keynesian cycle theory
• D) monetarist cycle theory

---

Definitions:

Capitalized Earnings Model

A method to value a company by dividing its earnings by the capitalization rate, assuming constant future earnings.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric that compares a company's stock price to its per-share earnings, used to evaluate if a stock is over or undervalued.

EPS

Earnings per share, a company's profit divided by its number of outstanding shares.

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.