For economists, the quick response of the stock market to new information about economic fundamentals is an example of

Question

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The quick response of the stock market to new information about economic fundamentals is an example of market efficiency, which is the concept that stock prices quickly and accurately reflect all available information about a company or economy. This means that investors cannot consistently earn abnormal returns by using publicly available information, as the market has already incorporated it into stock prices.

For Economists, the Quick Response of the Stock Market to New