Sometimes one observes that the price of a company's stock falls after the announcement of favorable earnings. This phenomenon is
A) clearly inconsistent with the efficient markets hypothesis.
B) consistent with the efficient markets hypothesis if the earnings were not as high as anticipated.
C) consistent with the efficient markets hypothesis if the earnings were not as low as anticipated.
D) consistent with the efficient markets hypothesis if the favorable earnings were expected.
B
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When people hold money to transact purchases they expect to make, this is known as the:
a. precautionary demand for money. b. liquidity demand for money. c. spending demand for money. d. speculative demand for money. e. transactions demand for money.
Government-created price floors are typically imposed to
a. help consumers b. help producers c. raise tax revenue d. shift the supply curve to the left e. shift the demand curve to the right