According to the efficient market hypothesis, rational people will not recognize that asset prices are rising too quickly.
Answer the following statement true (T) or false (F)
False
According to the efficient market hypothesis, rational people have all the relevant information that is supposed to reflect the value of assets today and in the future. There is no way that they would not see an asset price bubble occurring.
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Explain what the Saudi oil minister meant when he warned OPEC of using its market power too much by saying "Remember, the Stone Age did not end because we ran out of stones."
What will be an ideal response?
"No country is abundant in everything." Discuss
What will be an ideal response?
It is true that __________ changes in velocity cause __________ changes in real GDP
A) small; no B) large; no C) small; large D) large; small
If your wages are indexed so that they automatically adjust for inflation, in a period of continued high inflation, the cost of the goods and services you buy ____ and your nominal income ____
a. decreases, decreases b. increases, increases c. decreases, remains the same d. increases, remains the same