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Author Question: Give two explanations why stock prices might deviate from their fundamental values. What will be ... (Read 16 times)

Garrulous

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on: Jun 30, 2018
Give two explanations why stock prices might deviate from their fundamental values.
 
  What will be an ideal response?

Question 2

Suppose there is a fiscal contraction. Which of the following is a complete list of the variables that must decrease?
 
  A) consumption
  B) consumption and investment
  C) consumption and output
  D) consumption, output and the interest rate
  E) consumption, output and investment


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Amiracle

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Reply #1 on: Jun 30, 2018
Answer to Question 1

Answers should discuss speculative bubbles and fads.

Answer to Question 2

C


Garrulous

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Reply 2 on: Jun 30, 2018
Gracias!

laurnthompson

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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