If asset markets are driven by the "animal spirits" of investors, then
a. those markets reflect rational behavior.
b. those markets reflect irrational behavior.
c. the efficient markets hypothesis is correct.
d. the stock market exhibits informational efficiency.
b
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Jamal buys a new jacket for $50 . If his willingness to pay is ____, he receives consumer surplus of $15 on his purchase
a. $15. b. $35. c. $50. d. $65.
Elasticity measures the
A) percentage change in a variable. B) slope of a curve. C) change in a variable. D) responsiveness of a variable to a change in another variable.
Explain why imperfect information can lead to market failure. Explain how the market can solve the problem of imperfect information
Under what circumstances may it be more efficient for the government to produce information instead of relying on the market?
If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the real interest rate turned out to be 5.1%, then the actual inflation rate equals
A) 1.4%. B) 1.5%. C) 2.6%. D) 6.5%.