A one-unit increase in government expenditures should, according to the model, increase GDP by

Fundamental analysis shows that Quadrangle Company is fairly valued. Then Quadrangle Company unexpectedly improves its production techniques and unexpectedly hires a new CEO away from another very successful competitor. Suppose this has no effect on the price of the stock of Quadrangle Company

a. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis. b. Fundamental analysis would now show the corporation is overvalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis. c. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is consistent with the efficient markets hypothesis. d. Fundamental analysis would now show the corporation is undervalued. The fact that the price was unchanged is not consistent with the efficient markets hypothesis.

Answer the following statements true (T) or false (F)

1. To calculate the rate of return on a particular bond, multiply the coupon rate by the interest rate, then add the result to the face value of the bond. 2. Equity is the monetary value that would remain after a house is sold and any bank loans repaid. 3. Accumulating hundreds of thousands of dollars by retirement is not an achievable goal even for a well-educated person who starts saving early in life. 4. Firms make and sell an astonishing array of goods and services, and an investor can receive a return on the company’s decisions by buying stock in that company. 5. In recent years, laws have been enacted in many states to discourage citizens from voting, rather than making it easier for them to vote.