You have a client who recently received an inheritance of $250,000. He is 27 and would like to invest the money in the stock market for her retirement in 35 years. The news today said that the economy recently went into a recession and the Fed also announced that they will begin selling Treasury securities.

1. The stock market going up:

Predicts that the economy is going to expand

Does not predict anything about the economy

Predicts that the economy has expanded

Predicts that the economy will never expand

2. Which of the following is not a major input of CPI?

rent prices

hospital prices

milk prices

stock prices

3. Which of the following industries would have the highest threat to entry?

biotechnology

Big box retail

airlines

Restaurant

4. Which of the following industries are likely just earning their cost of capital?

Group of answer choices

Financial services

Pharma

Software

Grocery store