1. Supply Side Policies Supply side policies tend to focus on ____________________ to ____________________ to generate economic growth.
regulations and controls; redistribute wealth among citizens
investment incentives and lower tax rates; allow the private sector
bailouts and compensation packages; allow financial firms
spending and higher taxes; allow the public sector
2. Free Motion Enterprises paid a $2.20 per share annual dividend last week. Dividends are expected to increase by 3.75 percent annually. Your required rate of return is 15 percent. If Free Motion’s stock is selling for $18 per share, what is your trading strategy on this stock?
Buy, the stock is currently undervalued
Sell, the stock is currently undervalued
Buy, the stock is currently overvalued
Sell, the stock is currently overvalued
Nothing, the stock is fairly priced