This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: level. T If the level of investment equals the replacement rate, an economy’s productive capacity will not change. T If investors are rational, the price of a stock will equal the discounted value of expected future dividends. F According to Eugene White, the speculative bubble of the late 1920s resulted for misleading corporate reports that overstated firms’ earnings. F Cliometric research indicates that an increased supply of loans caused the 1920s bull market. T Hoarding of gold in the early 1930s led to decreases in banks’ reserves. T Following the stock market crash in October 1929, the share prices of many stocks remained above levels reached in 1926. F The “fed funds rate” is the interest rate that the Federal Reserve charges commercial banks for loans....
View Full Document
This note was uploaded on 09/13/2011 for the course ECON 2200 taught by Professor Moore during the Spring '07 term at University of Georgia Athens.
- Spring '07