Which of the following is true?
A) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.
B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
C) Stock market investors can reduce their risk if they hold shares of specific stocks for only short periods of time.
D) People who invest in the stock market are virtually certain to make money.
B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
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As contrasted to the mainstream view, Keynesian economists believe that ________ than mainstream economists believe
A) the multiplier effect is larger B) the burden of government debt on future generations is larger C) fiscal stimulus is weaker D) potential GDP is smaller E) the real GDP growth rate is higher
The classical economists believed that if the quantity of money doubled
A) output would double. B) prices would fall. C) prices would double. D) prices would remain constant.
Official data may overstate the extent of poverty because
A. poverty is a relative concept as opposed to an absolute concept. B. it does not add “in-kind” transfers to the incomes of the poor. C. it overstates the taxes paid by the poor. D. it overestimates the amount the poor earn in the “underground economy.”
The millions of workers leaving the job market for the reasons given are
What will be an ideal response?