According to the efficient market hypothesis, which of the following statements is not correct?
a. Stock market prices tend to rise today if they rose yesterday.
b. As judged by the typical person in the market, all stocks are fairly valued all the time.
c. At the market price, the number of shares being offered for sale matches the number of shares people want to buy.
d. All of the above statements are incorrect.
a
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Cooperation in an economy characterized by extensive specialization requires
A) a rapid exchange of accurate information. B) flexible government controls. C) high unemployment to stem inflation. D) highly trained economists to "fine-tune" the economy. E) price controls.
Barry Eichengreen (1992) blamed the severity of the worldwide depression from 1929 to 1933 on the countries who abandoned the rules of the gold standard during economic downturns
This abandonment relieved countries from the monetary discipline measures of the gold standard. Indicate whether the statement is true or false
"The second glass of Evian water was very good. May I have another?" Which of the following is necessarily true regarding this statement?
a. The marginal utility of the second glass is negative. b. The marginal utility of the second glass is less than the marginal utility of the first glass. c. The marginal utility of the second glass is positive. d. The water is free. e. The marginal utility of the third glass is negative.
Which set of changes is definitely predicted to lower Real GDP in the short run?
A) The money supply rises and labor productivity rises. B) The U.S. dollar depreciates and wage rates fall. C) The U.S. dollar appreciates and labor productivity rises. D) Foreign real national income falls and wage rates rise. E) none of the above