Compared to the previous three decades, after 1982 recessions have been ________ and expansions have been ________

A decrease in net wealth will _____

a. shift the consumption function downward b. make the consumption function steeper c. cause an upward movement along the consumption function d. cause a downward movement along the consumption function e. make the consumption function flatter

A low price-earnings ratio indicates that either the stock is

a. undervalued or people are relatively optimistic about the corporation's prospects. b. overvalued or people are relatively optimistic about the corporation's prospects. c. overvalued or people are relatively pessimistic about the corporation's prospects. d. undervalued or people are relatively pessimistic about the corporation's prospects.