Which of the following is a probable consequence of the presence of accounting rules that allow firms to hide the financial impact of actions that would harm investors?
a. Investors may be able to enforce market efficiency.
b. The WTO will disenfranchise the country that allows this to happen.
c. Investors will immediately organize a speculative attack and the price of stocks will inflate.
d. The balance-of-payments deficit will increase, leading the economy into a debt trap.
e. Investors may not be able to adequately judge when the risk of investing in a firm rises.
e
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Use the data in the table below to answer the following question.PriceQuantity Demanded$201218171620142412301036840644448The price elasticity of demand (based on the midpoint formula) when price decreases from $12 to $10 is
A. inelastic. B. unit elastic. C. elastic. D. perfectly elastic.
The table above gives information about the economy of France. The growth rate of real GDP per person in 1998 is ________ percent
A) 0.4 B) 3.1 C) 1.9 D) 3.6 E) 4.0
The switch to the use of ethanol in gasoline is driven primarily by its relatively lower price. Assuming a competitive market, what effect would this change have on the equilibrium price and output for gasoline?
A) Price rises, output falls. B) Price falls, output rises. C) Price rises, output rises. D) Price falls, output falls.
The market clearing assumption is
a. a central assumption of the short-run macro model b. the idea that prices in every market will adjust until quantity supplied and quantity demanded are equal c. the idea that excess supply always leads to an increase in demand d. the idea that markets only work when they are in equilibrium e. believed by most economists today to be an unreasonable assumption