Investment increases when there ________ stock prices.
A. a consolidation of
B. are deflated
C. is a run up in
D. are overvalued
Answer: C
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Suppose that the current price of oil is $60 per barrel and the quantity sold is 90 million barrels per day
The current estimates of the price elasticity of supply and demand are ? = 1 and ? = -.2 respectively. What will be the effects on the market price and quantity if the U.S. government suddenly decides to purchase an additional 2 million barrels of oil? Assume that the supply and demand curves are linear and the addition consumption of oil by the government results in a parallel shift of the supply curve to the left by 2 million barrels per day.
Even though conspicuous consumption can serve as a credible signal of ability, it can lead to socially inefficient outcomes because:
A. earnings and ability are very poorly correlated. B. conspicuous consumption is not highly correlated with earnings. C. conspicuous consumption can lead to positional arms races. D. conspicuous consumption has been demonstrated to be poorly correlated with ability.