Why might someone be willing to pay more than the fundamental value for a stock?
She may believe that others will pay even a higher price for it in the future.
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A temporary decline in productivity would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) shift up and to the right only if people face borrowing constraints.
An example of a good that is rival in consumption is:
A. a hamburger. B. radio signals broadcast over the air. C. national defense. D. public utilities.
A price floor is a legal minimum on the price at which a good or service can be sold
a. True b. False Indicate whether the statement is true or false
Other things the same, an increase in the foreign price level
a. reduces the real exchange rate. This reduction could be offset by a decrease in the domestic price level. b. reduces the real exchange rate. This reduction could be offset by an increase in the domestic price level. c. increases the real exchange rate. This increase could be offset by a decrease in the domestic price level. d. increases the real exchange rate. This increase could be offset by an increase in the domestic price level.