Other things constant, the more profitable a corporation is,
a. the lower the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues
b. the higher the value of its shares on the stock market and the higher the interest rate it would have to pay on new bond issues
c. the higher the value of its shares on the stock market and the lower the interest rate that would have to be paid on new bond issues
d. the lower the value of its shares on the stock market and the higher the interest rate that would have to be paid on new bond issues
e. the lower the interest rate that would have to be paid on new bond issues; the value of its shares on the stock market does not vary
Question 2
The supply curve of U.S. dollars is drawn assuming other things constant, such as
a. income in the rest of the world
b. expectations about the rate of inflation in the United States relative to the rest of the world
c. U.S. tastes and preferences for foreign goods
d. the interest rate in the United States relative to the rest of the world
e. tastes and preferences of the rest of the world for U.S. goods and services
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