What effect might a fall in stock prices have on busi-ness investment?
What will be an ideal response?
Answer: The lower price for a firm's shares means that it can raise a smaller amount of funds, and so investment in plant and equipment will fall.
Economics
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As relative prices in various industries change due to trade, the marginal product of the mobile resources used in the expanding industry __________, and the marginal product of the mobile resources used in the contracting industry __________.
a. rises; falls b. falls; rises c. remains the same; remains the same d. changes by exactly the same percentage; changes by exactly the same percentage
Economics
Discuss the statistical evidence concerning the efficient markets hypothesis
Economics