Suppose that increases in the money supply lead to a rise in stock prices. should you go out and buy stocks? a. you should buy stocks because you can expect to earn more than the equilibrium return on stocks by acting on the money supply information. b. you should buy stocks because the increase in the money supply should increase stock prices. c. you should not buy stocks because the rise in the money supply is publicly available information that will be already incorporated into stock prices. d. you should not buy stocks because bonds are always a better investment than stocks.

Stormie zanzibar owns a bakery in the fictitious country of olombia. each month the government’s market ministry mails her a large list of the regulated price of goods which include products like bread, muffins and flat bread. the list also dictates the types of goods she can sell at the bakery and what she is to charge. because of the regulations placed on these goods, stormie has increased her production of sweets, pies, cakes, croissants and buns and decreased her supply of breads, muffins and flat bread. she has taken these steps because the sweet goods’ prices are not government controlled. stormie zanzibar lives under what type of economy?