If You Buy a Burger and Fries at Your Favorite

question 76

Multiple Choice

If you buy a burger and fries at your favorite fast food restaurant,

• A)neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant.
• B)GDP will be higher, but consumption spending will be unchanged.
• C)GDP will be unchanged, but consumption spending will be higher.
• D)both GDP and consumption spending will be higher.

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Definitions:

Daily Fluctuation

This describes the variations in the price of a financial instrument, such as stocks or commodities, within a single trading day.

Mispriced Securities

Refers to stocks or bonds that are sold for a price which does not accurately reflect their intrinsic value.

Financial Markets

Marketplaces where buyers and sellers participate in the trade of assets such as equities, bonds, currencies, and derivatives.

Market Efficiency

A concept that describes the degree to which stock prices and other securities prices reflect all available, relevant information.