37. According to the efficient market hypothesis: stocks are often overpriced. t

Question

37. According to the efficient market hypothesis: stocks are often overpriced. the random fluctuations of the value of stocks is unexplainable. stocks are neither overpriced or underpriced. stocks are often underpriced. 38. A general decrease in wages will result in the aggregate demand curve shifting to the left aggregate demand curve shifting to the right short-run aggregate supply curve shifting to the left. short-run aggregate supply curve shifting to the right. 39. Crowding out negatively affects the economy by: increasing private borrowing. decreasing government borrowing decreasing consumption. reducing private investment spending on physical capital. 40. Discretionary fiscal policy is the use of O government spending or tax policy to manage aggregate demand interest rate changes to affect aggregate supply. government spending or tax policy to manage aggregate supply interest rate changes to affect aggregate demand.

Explanation / Answer

5. D

6. B

7. B

8. C

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