5. Under the Bretton Woods system, the organization assigned the task of making loans to countries that were experiencing balance of payments difficulties is known as the

Economists
have focused more attention on the formation of expectations in
recent years. This  


increase
in interest can probably best be explained by the recognition that

)
A monetary expansion ________ stock prices due to a decrease in the
________ and an increase  
in
the ________, everything else held constant.

Information
plays an important role in asset pricing because it allows the buyer
to more  


accurately
judge ________.

Using
the one-period
valuation model, assuming a year-end
dividend of $1.00, an expected  


sales
price of $100, and a required rate of return of 5%, the current price
of the stock would be

Stockholders
are residual claimants, meaning that they

An
inverted yield curve predicts that short-term
interest rates

A
________ yield curve predicts a future increase in inflation.

According
to the segmented markets theory of the term structure

If
the expected path of one-year
interest rates over the next five years is 4 percent, 5 percent, 7  


percent,
8 percent, and 6 percent, then the expectations theory predicts that
todayʹs
interest rate  


on
the five-year
bond is

Typically,
yield curves are