For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor, and (2) the expected return as seen by the marginal investor must equal his or her required return.
Answer the following statement true (T) or false (F)
True
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In the two-period model, a lower real interest rate
A. reduces the present value of income. B. causes the budget constraint to rotate in a clockwise direction. C. makes households that had initially planned to save better off. D. makes households that had initially planned to borrow better off.
When we rely on mental shortcuts, we run the risk of having incomplete or inaccurate impressions of people or things, also known as ______.
a. mindless interaction b. perceptual bias c. attribution error d. selective attention
Which is correct?
a. Nearly 2/3 of adults met the 2008 Physical Activity Guidelines for Americans. b. Nearly two-thirds of adults met the 2008 Physical Activity Guidelines for Americans.
A seller must take steps to guard against the foreseeable misuse of a product
a. True b. False Indicate whether the statement is true or false