1. The word “efficient” in the term “efficient markets hypothesis” refers to the idea that

a. fundamental analysis is an efficient way to go about choosing which stocks to buy or sell.

b. stock prices move upward and downward “efficiently,” rather than following a “random walk.”

c. the stock market is “informationally efficient.”

d. All of the above are correct.

2. In 2009 and 2010, the federal government’s budget deficit was about

a. 10 percent of GDP, and this was the highest debt-GDP ratio in U.S history.

b. 5 percent of GDP, and this was the highest debt-GDP ratio since World War II.

c. 10 percent of GDP, and this was the highest debt-GDP ratio since World War II.

d. 5 percent of GDP, and this was the highest debt-GDP ratio in U.S history