The random walk with a trend for the stock market means which of the following?
a. Stock prices are unpredictable on a day to day basis and over time.
b. Stock prices have a predictable pattern that investors can determine and use to make profit.
c. On any given day stock prices are as likely to increase as decrease but over time prices decrease.
d. On any given day stock prices are as likely to increase as decrease but over time prices increase.
d. On any given day stock prices are as likely to increase as decrease but over time prices increase.
You might also like to view...
Which of the following would be studied by macroeconomists?
A. Inflation in developing countries. B. The effect of government subsidies on sugar prices. C. The impact of the minimum wage on families below the poverty level. D. The effect of rent controls on housing prices in New York City.
One advantage of emissions permits is that they allow the government to choose the level of pollution reduction.
Answer the following statement true (T) or false (F)
Economics is the study of
A) the allocation of scarce resources to satisfy unlimited wants. B) why some people want certain goods and services. C) earning the most income. D) ways to use fewer resources.
Fill in the blanks. For a normal good, the income effect is _________, and the substitution effect is _______.
a. positive; positive b. positive; negative c. negative; positive d. negative; negative