P/E Ratios Are Generally Depressed When Interest Rates Are _____

question 44

Multiple Choice

P/E ratios are generally depressed when interest rates are _____ and inflation is ________.

• A)high; low
• B)low; high
• C)high; high
• D)low: low

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Definitions:

Marginal Revenue

The additional revenue that a company receives from selling one more unit of a product or service.

Marginal Revenue

The rise in income generated by the sale of an extra unit of a product or service.

Total Revenue

The sum of all revenue collected from selling goods or services before deducting any costs.

Marginal Cost

The monetary requirement for the generation of one additional unit of a good or service.