Suppose That Interest Rates Unexpectedly Rise and That FineLine Corporation

question 70

Multiple Choice

Suppose that interest rates unexpectedly rise and that FineLine Corporation announces that revenues from last quarter were down but not as much as the public had anticipated they would be down.According to the efficient markets hypothesis,which of the these things make the price of FineLine Corporation Stock fall?

• A)both the interest rate rising and the revenue announcement
• B)neither the interest rate rising nor the revenue announcement
• C)only the interest rate rising
• D)only the revenue announcement

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Definitions:

Farm Subsidies

Financial support and assistance provided by the government to farmers and agribusinesses to supplement their income and manage the supply of agricultural commodities.

American Institution

Organizations, principles, or traditions that are foundational to the society and culture of the United States.

International Value

The worth of a product or service in the international market, often influenced by factors like exchange rates, demand and supply in global markets, and international competition.

Agricultural Exports

Goods produced through farming and agriculture that are sold to other countries.