Which of the Following Statements Describes a Possible Self- Fulfilling

question 26

Multiple Choice

Which of the following statements describes a possible self- fulfilling prophesy in the short run involving households' behaviour? A belief of an impending recession leads households

• A)to increase their registration in post- secondary institutions to reduce their risk of being unemployed.
• B)to increase their desired saving.
• C)to increase their desired consumption.
• D)to decrease their desired saving.
• E)to increase the autonomous portion of their desired consumption..

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Definitions:

Monarch Stock Fund

A hypothetical or specific mutual fund focusing on stocks, possibly structured around companies with substantial market influence or leadership.

Characteristic Line

In finance, it's a line generated in a scatterplot by regressing the returns of a security against the returns of the market, used to assess the security's sensitivity to market movements.

T-Bills

Short-term debt securities issued by the U.S. Treasury to finance government spending, seen as low-risk investments.

Market Portfolio

A theoretical bundle of investments that contains all available assets in the market, representing the entire investment universe at a given time, used in financial theory to model returns.