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Suppose the government announces that, based on a just-completed survey, the growth rate in the...

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Finance

Suppose the government announces that, based on a just-completed survey, the growth rate in the economy is likely to be 2% in the coming year, as compared to 5% for the past year. Will security prices increase, decrease, or stay the same following this announcement? a. Decrease--assuming the information was expected by the market. b. Increase--assuming the market was not expecting the annoucement. c. Decrease--the information was already priced into the market prices (markets are not efficient) d. Stay the same--the information was already priced into the market prices (markets are efficient)

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