Which of the Following Statements Is True

question 12

Multiple Choice

Which of the following statements is true?

• A) Marx did not follow a historical approach to economics.
• B) To Marx, capitalism was a stage in the development of economic systems.
• C) Marx explained how capitalism would give way to feudalism.
• D) Marx was the lone economist in his time who supported the labor theory of value.

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Definitions:

Gordon Growth Model

The Gordon Growth Model is a method to determine the intrinsic value of a stock based on a future series of dividends that grow at a constant rate.

Fisher Effect

An economic theory that describes the relationship between inflation and both real and nominal interest rates.

Real Rate of Return

The annual percentage profit earned on an investment, adjusted for changes in prices due to inflation or other external effects.

Effective Annual Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.