Historically, which of the following has had the highest average annual rate of return?
A) U.S. Treasury bonds
B) corporate bonds
C) money market mutual funds
D) corporate stocks
D) corporate stocks
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Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
A) interest rate goes down, and quantity of borrowed funds increases. B) interest rate goes down, and quantity of borrowed funds decreases. C) interest rate goes up, and quantity of borrowed funds decreases. D) interest rate goes up, and quantity of borrowed funds increases.
Are whales excludable? Are they rival in consumption? How do we classify whales in terms of the four types of goods?
The phrase "too much money chasing too few goods" best describes:
A. the GDP gap. B. demand-pull inflation. C. the inflation premium. D. cost-push inflation.
When the economy is not producing at capacity, economic policies are
A. ineffective at changing output. B. effective at changing output. C. unrelated to output. D. none of the above.