Which of the following is a behavior inconsistent with the Efficient Markets Hypothesis?
A) diversification of one's portfolio
B) avoiding active trading of stocks
C) holding onto a losing stock while being more likely to sell a stock that has increased in value
D) the purchase of a stock index fund
C
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Suppose that in 2012, real GDP is larger than nominal GDP. The GDP price index in 2012 is definitely
A) less than 100. B) larger than the GDP price index in 2012. C) greater than 100. D) negative. E) less than the GDP price index in 2012.
In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________, and the equilibrium price of gasoline ________
A) increases; rises B) increases; falls C) decreases; rises D) decreases; falls E) does not change; rises