Which of the following is not consistent with the efficient market hypothesis?
a. Stock prices should follow a random walk.
b. Index funds should typically outperform highly managed funds.
c. News has no effect on stock prices.
d. There is little point in spending many hours studying the business pages looking for undervalued stocks.
c
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When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________
A) win; win B) lose; win C) lose; neither win nor lose D) lose; lose E) win; lose
The Smithsonian Agreement of 1971 was hailed by President Nixon as a fundamental reorganization of the international monetary system. In fact, what it accomplished was
A) the revaluation of the dollar. B) the devaluation of the dollar. C) the reduction of the gold content of the dollar. D) the elimination of gold backing for the dollar. E) Both B and C.
An decrease in the velocity of money for given levels of income and the interest rate would shift the
a. LM curve up. b. IS curve up. b. IS curve down. c. LM curve down.
You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour
Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees? A) MP = 3 cars B) MP = 1.5 cars C) MP = 15 cars D) MP = -1 cars