The volatility of stock prices, particularly in the short-run, may, according to Professor S. Grossman, be due to
a. large numbers of stockholders fearful of losing wealth who sell at some predetermined level.
b. some traders being better informed than others about real financial conditions.
c. either or both of the above.
d. the increasing use of stock options as compensation for corporate executives.
c. either or both of the above.
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Use the following production possibilities tables to answer the next question.Germany's Production Possibilities ABCDEFAutos (millions)048121620Chemicals (millions)4032241680United States' Production Possibilities ABCDEFAutos (millions)03691215Chemicals (millions)60483624120Suppose that each nation specializes in producing the product for which it has a comparative advantage, and the terms of trade are set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and
A. 24 million units of chemicals. B. 36 million units of chemicals. C. 48 million units of chemicals. D. 12 million units of chemicals.
The limits of the terms of trade between two countries are determined by those countries' opportunity costs of production
a. True b. False
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions remains the same. b. The quantity of real loanable funds per time period falls, and reserve-related (central bank) transactions become more negative (or less positive). c. The quantity of real loanable funds per time period rises, and reserve-related (central bank) transactions remains the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The quantity of real loanable funds per time period and reserve-related (central bank) transactions remain the same.
All other things being equal, an increase in the supply of labor will lead to a fall in the wage.
Answer the following statement true (T) or false (F)