According to the efficient markets hypothesis, which of the following would increase the price of stock in the Simpson Corporation?
a. Simpson announces, just as everyone had expected, that it has hired a new highly respected CEO.
b. Simpson announces that its profits were low, but not as low as the market had expected.
c. Analysis by a column in a business weekly indicates that Simpson is overvalued.
d. All of the above would increase the price.
b
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To construct an ordinary demand curve for good X,
a. change the price of good X in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets. b. change the prices of both goods in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets. c. change the price of good Y in the consumer choice diagram and observe the change in the quantity of good X among the optimum market baskets. d. change the consumer's income in the consumer choice diagram and observe the change in the quantity of good X.
When government spending is added to the basic macroeconomic model, the multiplier for G would
a. be higher than the multiplier for autonomous spending. b. be lower than the multiplier for autonomous spending. c. be equal to the multiplier for autonomous spending. d. have no relationship to the autonomous spending multiplier.
Which of the following would be most likely to cause an increase in the demand for gold?
A) A decrease in the price of gold B) The expectation of a future decrease in the price of gold C) An increase in the price of gold D) The expectation of a future increase in the price of gold E) An increase in the supply of gold
When playing a game, a mixed strategy refers to
A) randomly selecting a strategy. B) consistently alternating between two strategies each time a game is played. C) never playing the same strategy twice in a row. D) never playing the same strategy more than once.