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What is the random walk theory of stock prices? What does it indicate about the ability of “experts” to forecast accurately the future direction of stock prices? Are stocks a risky investment? How can one reduce the risk accompanying stock market investments?

What is the underlying message of the following lyrics from Keynes? [Keynes] Public works, digging ditches, war has the same effect.Even a broken window helps the glass man have some wealth.The multiplier driving higher the economy’s health.

How did the Social Security system influence the size of the budget deficit during 1985–2010? How will it influence the deficit during the next two decades? Is this a cause for concern? Why or why not? Does an increase in the national debt increase the supply of money(M1)? Can the money supply increase when the

Does the national debt have to be paid off at some time in the future? What will happen if it is not? What is the difference between the national debt and privately held federal debt? Why is the distinction between the two important?

Several well-known Keynesian economists argue that the weak recovery of the U.S. economy from the 2008–2009 recession is because the spending increases and budget deficits have been too small. Do you think they are correct? Why or why not? If we continue running large deficits and the economy remains weak, do you think Keynesian economists

The price elasticity of demand for personal computers is estimated to be−2.2. If the price of personal computers declines by 20 percent, what will be the expected per-centage increase in the quantity of computers sold?

The Ajax Corporation has the following set of projects available to it: Ajax can raise funds with the following marginal costs: First $250 million 14.0% Next 250 million 15.5 Next 100 million 16.0 Next 250 million 16.5 Next 200 million 18.0 Next 200 million 21.0 Use the marginal cost and marginal revenue concepts to derive

In the context of the shareholder wealth-maximization model of a firm, what is the expected impact of each of the following events on the value of the firm? Explain why. a. New foreign competitors enter the market. b. Strict pollution control requirements are enacted. c. A previously non-union workforce votes to unionize. d. The rate

Cascade Pharmaceuticals Company developed the following regression model, using time-series data from the past 33 quarters, for one of its non-prescription cold remedies: Y = –1.04 + 0.24X1 – 0.27X2 Where Y = quarterly sales (in thousands of cases) of the cold remedy X1 = Cascade’s quarterly advertising (× $1,000) for the cold remedy X2 = competitors’ advertising for similar

What conceptual determinant of auto demand price elasticity is most closely associated with the differences in switching cost across the target customers in the “DirectMail Coupon at a Ford Dealership” example—low switching cost for the German couple who commute in an old Taurus and high switching cost for the older couple who drive Crown Vics?