Which One of the Following States That Investors Cannot Consistently

question 29

Multiple Choice

Which one of the following states that investors cannot consistently earn positive excess returns?

• A) market return hypothesis
• B) current market hypothesis
• C) efficient market hypothesis
• D) risk-return theory
• E) excess theory

Identify the factors that cause shifts in the supply and demand for loanable funds.

Analyze how changes in interest rates influence saving and borrowing behaviors.

Evaluate the impact of government policies and economic factors on the loanable funds market.

Interpret diagrams and tables related to loanable funds to determine equilibrium interest rates and quantities.

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Definitions:

Production Possibility Frontier

A curve depicting the maximum attainable combinations of two products that may be produced with available resources and technology.

Increasing Opportunity Costs

The principle that as you increase production of one good, the opportunity cost of producing an additional unit of this good increases.

Constant Opportunity Costs

A condition in which the opportunity cost of producing one more unit of a good remains constant irrespective of the quantity.

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product or service are produced.