Which of the Following Tend to Signal That Stock Prices

question 1

Multiple Choice

Which of the following tend to signal that stock prices are likely to rise in the future?
I.Employment increases after several months of recession.
II.Interest rates are low compared to the recent past.
III.Major market indexes have just reached record highs.
IV.Housing starts increase after several months of decline.

• A)I and II only
• B)II and III only
• C)I, II and IV only
• D)I, II, III and IV

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Definitions:

Utility Function

A mathematical representation that assigns a value to every possible choice to indicate the level of satisfaction or utility that choice provides to a consumer.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period of time.

Income

Remuneration obtained regularly through employment or investment activities.

Demand

Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.