During the last two centuries, after adjustment for inflation,
A) both corporate stocks and bonds have yielded an average annual real rate of return of about 3 percent.
B) corporate stocks have yielded an average annual real return of approximately 7 percent, compared to an average real return of about 3 percent for bonds.
C) corporate bonds have yielded an average annual real return of approximately 7 percent, compared to an average real return of about 3 percent for corporate stocks.
D) both corporate stocks and bonds have yielded an average annual real rate of return of about 7 percent.
B) corporate stocks have yielded an average annual real return of approximately 7 percent, compared to an average real return of about 3 percent for bonds.
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The fact that supermarkets, a land-intensive form of organization, have become the dominant form of grocery store in the United States suggests that:
A) there is little or no potential for input substitution in the grocery store business. B) transportation costs are insignificant in the grocery store business. C) land is a relatively inexpensive input in the grocery store business. D) labor is relatively inexpensive in the grocery store business.
Lisa runs a local flower shop. If it rains on Valentine's Day and she opens the shop, she will lose $200. If it does not rain on Valentine's Day, she will earn $500 dollars as profits
What is Lisa's expected profit on Valentine's Day if she only knows that there is a 30% chance of rain that day? A) $350 B) $290 C) $200 D) $150
During a contraction,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
Suppose the Phillips curve is represented by the following equation: ?t - ?t-1 = 20 - 2ut. Given this information, which of the following is most likely to occur if the actual unemployment in any period is equal to 6%?
A) the rate of inflation will tend to increase B) the rate of inflation will be constant C) the rate of inflation will tend to decrease D) none of the above