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    Principles of Macroeconomics Study Set 8
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    Exam 14: The Basic Tools of Finance: Asset Valuation
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    If More People Think a Corporation's Stock Is Overvalued Than
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If More People Think a Corporation's Stock Is Overvalued Than

Question 5

Question 5

Multiple Choice

If more people think a corporation's stock is overvalued than think it is undervalued then there is a


A) surplus,so its price will rise.
B) surplus,so its price will fall.
C) shortage,so its price will rise.
D) shortage,so its price will fall.

Correct Answer:

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