A bubble or panic generally occurs in the stock market because of:
a. upswings in the business cycle.
b. expansionary monetary policies undertaken by the government.
c. irrational, or abnormal forecasts, or market valuations.
d. an increase in the profitability of the firms.
e. deliberate government actions to control inflation.
c
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Aggregate planned expenditure decreases if
A) exports increase. B) government expenditure on goods and services increases. C) autonomous consumption increases. D) real GDP decreases. E) investment increases.
The size of the deadweight loss, or excess burden, of a tax depends on the
A) amount of producer surplus but not the amount of consumer surplus because it is the producers who send the tax revenues to the government. B) strength of demand. C) strength of supply. D) elasticities of demand and supply. E) number of demanders and the number of suppliers.
A example of a good with external benefits is
A) a pizza. B) a dose of flu vaccine. C) a sewing machine. D) an imported good. E) a pair of running shoes.
Explain how new technologies, which increase productivity, affect the average variable cost, average total cost, and marginal cost curves
What will be an ideal response?