The breakdown of U.S. Gross Domestic product into its major categories is usually as: Personal consumption, government purchases, gross private domestic investment, net exports.
Major leading indicators: Money supply M2, consumer expectations, and stock prices S&P500
All are goals of monetary policy except: Stable prices, business stability, sustained economic growth, but NOT a balance in domestic payments.
Fiscal policy concerns the governments: spending and taxing plans.
Capacity util measures current manufacturing output against potential output ALL OF THESE: 1. when capacity utilization is low, companies use their most productive and efficient plants and equip. 2. As capacity utilization increases, companies bring less efficient plants and equipment on line. 3. When the capacity utilization rate move above 80%, inflationary pressures may start to build in the economy.
Why an investor would use the rotational investing method? To attempt to profit from movements in the economic cycle.
In what stage in industry life cycle are companies likely to be privately owned? DEVELOPMENT.
The crossover point on the life cycle curve is the point where: THE COMPANYS INDUSTRY MOVES FROM THE GROWTH STAGE TO THE EXPANSION STAGE.
Industries in the maturity stage will have growth rates comparable to which: Equal to the long term trend in the gross domestic product GOP
Michael Porter divides competitive structure into five basic competitive forces. Which doesn’t belong? THE RELATIVE PROFIT MARGINS BETWEEN COMPETITORS.
In general the P/E ratio of a stock INCREASES as inflation DECREASES
Which of the lfollowing would most likely affect the P/E ratio of the market in general?1. A significant change in government policy.2. Declining earnings of the S&P 500 companies.3 Investors expectations about inflation changes and becomes either more positive or more negative.
The P/E ratio of a particular