A Common Strategy for Passive Management Is

question 19

Multiple Choice

A common strategy for passive management is

• A)creating an index fund.
• B)creating a small firm fund.
• C)creating an investment club.
• D)creating an index fund and creating an investment club.

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Definitions:

Simple Multiplier

The Simple Multiplier is an economic concept that quantifies the impact of a change in investment, government spending, or other economic activity on total output or income.

Aggregate Expenditure

Aggregate expenditure is the total amount of spending in an economy, including consumer spending, investment, government spending, and net exports.

Equilibrium Real GDP

The level of gross domestic product where aggregate supply equals aggregate demand at current prices, adjusted for inflation.

Marginal Propensity

Refers to the ratio of the change in an individual's consumption to the change in their income.