Economists disagree as to whether

a. the stock price of a company should reflect the company's expected profitability.
b. the basic tools of finance reflect valid ideas.
c. stock prices reflect rational estimates of a company's true worth.
d. there is any relationship between stock market fluctuations and fluctuations in the economy more broadly.


c

Economics

You might also like to view...

Refer to the scenario above. The time value of the amount deposited is:

A) $300. B) $1,000. C) $1,300. D) $2,300.

Economics

Suppose the government has declared beer to be an illegal substance and imposes a fine on anyone caught buying a beer. Selling beer, however, remains legal

Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer

Economics

When implementing monetary policy, the variable the Federal Reserve watches most closely is the

a. required reserve ratio b. federal funds rate c. long term bond rate d. national debt e. short term corporate bond rate

Economics

A firm in China sells toys to a U.S. department store chain. Other things the same, these sales

a. increase U.S. net exports and decrease Chinese net exports. b. decrease U.S. net exports and increase Chinese net exports. c. increase U.S. and Chinese net exports. d. decrease U.S. and Chinese net exports.

Economics