If Business Confidence Increases

question 150

Multiple Choice

If business confidence increases,

• A)there will be an upward movement along the AD curve.
• B)there will be a downward movement along the AD curve.
• C)the AD curve will not be affected.
• D)the AD curve will shift to the left.
• E)the AD curve will shift to the right.

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Definitions:

Sharpe Measure

A metric to assess the performance of an investment by adjusting for its risk, calculating the difference between the returns of the investment and the risk-free rate, divided by the investment's standard deviation.

Passive Strategy

An investment strategy that aims to match, rather than outperform, market returns by mimicking the investment holdings of a particular index.

Benchmark Portfolio

A standard or point of reference against which the performance of an investment portfolio can be measured.

M-Squared Measure

A measure used in finance to evaluate the performance of an investment portfolio by adjusting for its risk level compared to a benchmark.