Arguably, One of the Best Ways to Explain Why Americans

question 40

Multiple Choice

Arguably, one of the best ways to explain why Americans seemingly know very little about current government policies or the state of the economy is that:

• A) the quality of American education is poor.
• B) this information is not readily available to the general public.
• C) the time and resources it costs to attain and process this information is more than the benefit received from having this information.
• D) people are irrationally ignorant.

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Definitions:

After-Tax Rate

The rate of return on an investment after accounting for taxes.

Diversified Portfolio

An investment portfolio composed of a variety of assets to reduce exposure to risk associated with any single asset or industry.

Capital Gains

The profit earned from the sale of assets or investments, such as stocks or real estate, measured by the difference between the sale price and the original purchase price.

Interest Rate Risk

The potential for investment losses due to changes in interest rates.