USAnd International Data from 1960 - 2011 Confirm That

question 35

Multiple Choice

U.S.and international data from 1960 - 2011 confirm that

• A)changes the rate of inflation always correspond closely to changes in the growth rate of money
• B)the growth rate of money is equal to the inflation rate
• C)the average rate of money growth is about the same as the average rate of GDP growth
• D)higher sustained money growth rates are always associated with higher inflation rates
• E)the growth rate of money is about equal to the GDP growth rate plus the rate of inflation

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Definitions:

Comprehensive Income

The change in equity of a company during a period from transactions and other events not involving the company’s shareholders directly, including all revenues, expenses, gains, and losses.

Actual Return

The genuine gain or loss that an investment generates, as opposed to the expected or anticipated return.

Expected Return

Expected Return is the estimated profit or loss an investment is predicted to generate, based on historical or projected performance.

Prior Service Cost

A pension accounting term referring to the cost of benefits attributed to employee service in prior periods, often arising from plan amendments.