One implication of the efficient markets hypothesis is that investors should
A) concentrate their investments in just a few well-chosen assets.
B) hold a diversified portfolio of assets.
C) buy stocks rather than bonds.
D) buy bonds rather than stocks.
B
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The Maastricht treaty was the first step toward
A) having free trade between Russia and China. B) European monetary union. C) gaining credibility for monetary policy. D) reducing the costs of disinflation.
_____ believe that the primary causes of the Depression were autonomous declines in aggregate demand initiated by shocks to the IS curve
a. Monetarists. b. classical economists. c. early and late Keynesians. d. early Keynesians only.
Unanticipated increase in inflation transfers wealth from the borrower, who pays the pre-decided rate of interest to the lender
Indicate whether the statement is true or false
Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them
a. True b. False Indicate whether the statement is true or false