Q6. Which of the following is a disadvantage of forecasting based on economic indicators? A) Difficult to understand and interpret. B) Forecasts from leading indicators can be misleading. C) Ineffective at predicting the future of the economy.
Q7. Which of the following regarding the relationship between stock prices and changes in the growth of the money supply is least accurate? Changes in the growth of the money supply: A) do not affect the value effect in stock returns. B) affect the size effect in stock returns. C) affect the growth of the economy.
Q8. Which of the following statements regarding bonds is least accurate? A) Bond yields reflect expectations of inflation. B) Historical bond yields are independent of realized inflation. C) Increases in inflation adversely affect bond prices.
Q9. Which of the following securities would NOT decrease in price when inflation increases? A) The stock of firms with inelastic demand curves. B) The stock of firms with elastic demand curves. C) Bond prices.
|