Which of the Following Is Most Correct

question 19

Multiple Choice

Which of the following is most correct?

• A)In an efficient market, investors will buy overvalued stock which will drive its price down.
• B)In an efficient market, investors will sell undervalued stock which will drive its price down.
• C)In an efficient market, investors will sell overvalued stock which will drive its price down.
• D)None of these statements is correct.

---

Definitions:

Government Policy

The actions, laws, or regulations established by governments to guide economic, social, and administrative issues.

Money Supply

The total financial resources available within an economy at a given time frame.

Job Offers

Proposals from employers to prospective employees to begin employment under specified conditions.

Nominal Wage

The wage paid to workers measured in current dollars without adjustment for inflation.