When a firm builds a new factory, this is an example of an investment in

If in an efficient market all prices are correct and reflect market fundamentals, which of the following is a FALSE statement?

A) A stock that has done poorly in the past is more likely to do well in the future. B) One investment is as good as any other because the securities' prices are correct. C) A security's price reflects all available information about the intrinsic value of the security. D) Security prices can be used by managers to assess their cost of capital accurately.

If the aggregate supply curve is flat,

a. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP. b. contractionary fiscal or monetary policy will cause significantly less inflation. c. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation. d. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.