If the Stock Market Is at Least Semistrong Efficient Then

question 39

Multiple Choice

If the stock market is at least semistrong efficient then,

• A)trading on information that you read in The Wall Street Journal or on the internet is unlikely to allow you to purchase stocks that are significantly underpriced.
• B)you cannot expect to find underpriced or overpriced stocks even if you have inside information.
• C)you are likely to find underpriced and overpriced securities by conducting a thorough analysis of a firm's financial statements.
• D)you should be able to determine when to buy or to sell a stock by studying the pattern of its historical prices.

Comprehend the principles behind the spending multiplier and its impact on the economy.

Distinguish between expansionary and contractionary fiscal policies and their uses in addressing economic gaps.

Recognize the long-run and short-run effects of fiscal policies on the economy.

Assess the impact of fiscal policy on equilibrium output, employment levels, and price levels.