17-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter17TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.Atop-downanalysisofafirmstartswithA.therelativevalueofthefirm.B.theabsolutevalueofthefirm.C.thedomesticeconomy.D.theglobaleconomy.E.theindustryoutlook.2.AnexampleofahighlycyclicalindustryisA.theautomobileindustry.B.thetobaccoindustry.C.thefoodindustry.D.theautomobileindustryandthetobaccoindustry.E.thetobaccoindustryandthefoodindustry.3.Demand-sideeconomicsisconcernedwithA.governmentspendingandtaxlevels.B.monetarypolicy.C.fiscalpolicy.D.governmentspending,taxlevels,andmonetarypolicy.E.Alloftheoptionsarecorrect.4.ThemostwidelyusedmonetarytoolisA.alteringthediscountrate.B.alteringthereserverequirements.C.open-marketoperations.D.alteringmarginaltaxrates.E.Noneoftheoptionsarecorrect.5.The"real,"orinflation-adjusted,exchangerateisA.thebalanceoftrade.B.thebudgetdeficit.C.thepurchasing-powerratio.D.unimportanttotheU.S.economy.E.Noneoftheoptionsarecorrect.6.The"normal"rangeofprice-earningsratiosfortheS&P500IndexisA.between2and10.B.between5and15.C.lessthan8.D.between12and25.E.greaterthan20.17-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.7.MonetarypolicyisdeterminedbyA.governmentbudgetdecisions.B.presidentialmandates.C.theBoardofGovernorsoftheFederalReserveSystem.D.congressionalactions.E.Noneoftheoptionsarecorrect.8.AtroughisA.atransitionfromanexpansioninthebusinesscycletothestartofacontraction.B.atransitionfromacontractioninthebusinesscycletothestartofanexpansion.C.adepressionthatlastsmorethanthreeyears.D.onlysomethingusedbyfarmerstofeedpigsandnotaninvestmentterm.9.ApeakisA.atransitionfromanexpansioninthebusinesscycletothestartofacontraction.B.atransitionfromacontractioninthebusinesscycletothestartofanexpansion.C.adepre...
