-Refer to Exhibit 15-4

question 71

Multiple Choice

-Refer to Exhibit 15-4.In the row of this table containing blank (C) ,people are holding ______________ of their wealth in bonds and ________________ of their wealth in money.

• A) too much; too little
• B) too little; too much
• C) just the right amount; too little
• D) just the right amount; too much
• E) just the right amount; just the right amount

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Definitions:

Private Saving

The portion of individuals' or households' income that is not consumed or spent on taxes and is instead saved for future use.

Taxes Fall

A scenario in which the burden of taxes decreases, either through reduced rates or changes in policy that lead to lower tax obligations.

Price-Earnings Ratio

A valuation metric for stocks, calculated by dividing the market price per share by the earnings per share, used to assess a company's relative valuation.

Retained Earnings

Profits that a company keeps after dividends are paid, which are often reinvested into the business for growth or debt repayment.