Question: 1. Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not? 2. Explain how

1. Would a relatively high P/E ratio lead us to conclude that a stock is overvalued or undervalued? Why or why not?

2. Explain how a consumption tax could lead to a decrease in real interest rates.

3. List and discuss the various reasons that contributed to the financial crisis that occurred in 2008

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