Suppose Apple announces that its earnings for the fourth quarter of 2013 rose to $2 billion. As a result of this announcement the price of Apple's stock does not change. The best explanation of this is
A) market participants were expecting Apple's earnings to be greater than $2 billion.
B) market participants expected Apple's earnings to be $2 billion.
C) market participants expected Apple's earnings to be less than $2 billion.
D) market participants have adaptive expectations.
B
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In Figure 3-2, a point such as A
A. is preferable over B. B. is an efficient use of resources. C. represents a misallocation of resources. D. is not obtainable.
According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 7 percent, real GDP is
A) $9.9 trillion. B) $8 trillion. C) $10.1 trillion. D) $9.8 trillion. E) $10.2 trillion.
Foreign purchases of stocks and bonds issued by U.S. corporations ________ between 1995 and 2007 and ________ in 2014
A) decreased slightly; increased slightly B) increased at a slow but steady pace; increased dramatically C) remained stagnant; declined sharply D) increased dramatically; declined
Some economists believe that one factor that caused the financial crisis of 2007-2009 was top managers of large financial services firms making riskier investments than were in the best interests of the firms' shareholders
Indicate whether the statement is true or false