Matthias Is Taking a Course in Political Studies

question 34

Multiple Choice

Matthias is taking a course in political studies. He is learning about various economic philosophies that have proliferated in the past 100 years. Which term best describes the economic conception that "prosperity and democracy will flourish when market forces are unimpeded by government"?

• A)neo-conservatism
• B)economic self-determination
• C) neoliberalism
• D) liberal globalization

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Definitions:

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of a security and its expected return.

Expected Return

The anticipated value or profit that an investment is predicted to generate.

Benchmark Rate

The standard interest rate against which other borrowing or lending rates are measured, often set by central banks.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, often used in the pricing of risky securities.