Stock market bubbles are
A. created when investors pay too much attention to the fundamental determinants.
B. created when investors stray from the fundamental determinant of interest rates and give too much attention to corporate earnings.
C. created when investors stray from the fundamental determinant of corporate earnings and give too much attention to interest rates.
D. created when investors stray from the fundamental determinants of corporate earnings and interest rates and give too much attention to what the stock will be worth next year.
Answer: D
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Indicate whether the statement is true or false
Of the three big questions, what, how, and for whom, which of the fol-lowing is an example of a how question?
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If society is experiencing a net social cost from the production of a good, this implies that
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a. increased in value through 2008. b. decreased in value through 2008. c. increased in value through 2000 but then decreased in value through 2008. d. decreased in value through 2000 but then increased in value through 2008.