If a corporation announces that it expects quarterly earnings to increase by 25% and it actually sees an increase of 22%,
what should happen to the price of the corporation's stock if the efficient markets hypothesis holds, everything else held constant?
The stock's price should fall. The price had adjusted based on the statement of expected earnings. When the actual number turned out to be lower than expected, the stock price changes to reflect the additional information.
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People come to expect that the price of a gallon of gasoline will rise next week. As a result,
A) today's demand for gasoline and today's supply of gasoline do not change. B) next week's supply of gasoline decreases. C) the price of a gallon of gasoline falls today. D) today's supply of gasoline increases. E) today's demand for gasoline increases.
Labor demand curves are homogeneous of degree zero.
Answer the following statement true (T) or false (F)
Marginal utility theory assumes that when Sally consume less of a good that she was previously consuming more than one unit of, her ________
A) total utility increases B) marginal utility increases C) income increases D) total utility is maximized
The United States spends much more on health care per capita than other nations do but does not get better health outcomes.
Answer the following statement true (T) or false (F)