Signals are
A) used by economic decision-makers to inform others about their plans.
B) the method by which government planners inform economic decision-makers about the types of decisions they should make.
C) the method by which firms determine their profit maximizing quantity.
D) compact ways of conveying to economic decision makers information needed to identify industries where more resources are needed.
Answer: D
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In the one-period valuation model, an increase in the required return on investments in equity
A) increases the expected sales price of a stock. B) increases the current price of a stock. C) reduces the expected sales price of a stock. D) reduces the current price of a stock.
Which of the following is NOT a fixed payment loan?
A) a home mortgage B) a car loan C) a U.S. Treasury note D) a student loan