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[Related to the Making the Connection) A columnist for bloomberg.com observes that The Fed is easily able to tell when unemployment or nation is high,

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[Related to the Making the Connection) A columnist for bloomberg.com observes that "The Fed is easily able to tell when unemployment or nation is high, but inflated asset prices are much, much harde Source: Noah Smith, Ted Rates Are the Wrong Tools to Fight Bubbles.bloomberg.com, July 6, 2016 Which of the following might be a reason to explain the difficulty in identifying inflated asset prices? O A. it is difficult to discriminate the effect of interest rates on asset price OB. Reasonable investors can have widely varying expectations of future profitability O C. It is difficult to discriminate the effect of inflation on asset prices O D. The tax effect on corporate profitability is often challenging to identify prior to reporting corporate results. It would be for the Fed to have a set policy of deflating asset bubbles when it being so to determine whether asset prices are inflated above their fundamental value or not Click to select your answer MacBook Pro Search Or Type URL awERT oyment or inflation is high, but 1. Pe Rates Are the Wrong Tools to Fight Bubbles.bloomberg.com, July 6, 2016 Which of the following might be a reason to explain the difficulty in identifying inflated asset prices? O O O O A. It is difficult to discriminate the effect of interest rates on asset prices. B. Reasonable investors can have widely varying expectations of future profitability C. It is difficult to discriminate the effect of inflation on asset prices D. The tax effect on corporate profitability is often challenging to identify prior to reporting corporate results. It would be for the Fed to have a set policy of deflating asset bubbles when it being so to determine whether asset prices are infoted above their fundame hard easy Click to select your answer. MacBook Pro Q Search or type URL esc # W erest rates on asset prices. uying expectations of future profitability. lation on asset prices. often challenging to identify prior to reporting corporate results. to determine whether asset prices are inflated above their fundamental value or not cy of deflating asset bubbles when it being so easy hard

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