If the Real Interest Rate Is More or Less Constant

question 48

True/False

If the real interest rate is more or less constant and the growth rate of dividends falls sharply, the price-earnings ratio would fall, all else equal.

---

Definitions:

Typewritten

Documents or text produced using a typewriter or similar technology, characterized by uniform spacing and font.

Signature Stamp

A stamp made to mimic a person's signature, often used for authorizing documents in a more efficient manner.

Necessary Indorsement

An endorsement required to transfer the rights of a negotiable instrument to another party in the course of business transactions.

Dishonor

The refusal or inability of a party to honor a financial obligation or instrument, such as a check or bill of exchange, when presented for payment.