If society were to maximize the utility of its worst-off member, the final allocation would most likely be
A) relatively egalitarian.
B) on the contract curve.
C) Pareto efficient.
D) one in which one person gets everything.
A
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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.
Partial crowding out implies that a government deficit financed by selling bonds to the non-bank public will
A) have no effect on aggregate demand. B) reduce aggregate demand. C) increase aggregate demand. D) reduce aggregate demand in the short run but cause demand to increase in the long run.