All of the Following Are Necessary Conditions for an Efficient

question 86

Multiple Choice

All of the following are necessary conditions for an efficient market EXCEPT

• A) low trading or transaction costs.
• B) many buyers and sellers.
• C) free and readily available information to market participants.
• D) low stock prices.

Understand the effects of monetary policy on aggregate demand and real GDP.

Identify the role of money demand and how it shifts in different economic situations.

Analyze the impact of changes in money supply on planned investment and nominal GDP.

Grasp the significance of certain inflation targets set by the Federal Reserve.

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Definitions:

Article 2

The section of the Uniform Commercial Code (UCC) that governs the sale of goods in the United States.

Common Law

A legal system based on customs, traditions, and judicial decisions or precedents, rather than on codified written laws.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Adequacy of Consideration

An evaluation of whether the value exchanged between parties in a contract is reasonably fair at the time of the agreement.