In comparing actively managed mutual funds with those funds that simply buy and hold a large market portfolio (index funds), we would expect that
A) the actively managed funds provide a higher return than the index funds.
B) the index funds provide a higher return after expenses than the actively managed funds.
C) actively managed funds and index funds provide the same returns.
D) index funds provide a lower return than actively managed funds only if taxes are taken into consideration.
B
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Direct finance refers to the flow of funds from savers to borrowers through financial markets
Indicate whether the statement is true or false
In a monopolistically competitive market,
A. firms are small relative to the total market. B. no firm has any market power. C. there is easy entry and exit in the market. D. a and b E. a and c
Surge in government demand (G) discourages some private demand (I) and this is a major reason as to why the oversimplified formula: 1/(1–MPC) ____________ the size of the multiplier.
A. exaggerates B. underestimates C. has no impact on D. none of these
If a consumer chooses a combination of goods that are inside of her budget line, than
A) the consumer is maximizing her satisfaction. B) the consumer is spending more than her current income. C) the consumer has a constant marginal rate of substitution for the two goods. D) the consumer is not maximizing her satisfaction.