The Study by Economists Cox and Alm Found

question 134

Multiple Choice

The study by economists Cox and Alm found

• A)inequality in consumption is much smaller than inequality in annual income.
• B)inequality in consumption is slightly smaller than inequality in annual income.
• C)inequality in consumption is slightly larger than inequality in annual income.
• D)inequality in consumption is much larger than inequality in annual income.

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Definitions:

Preferred Stock

A type of stock that provides a fixed dividend that is paid before any dividends are paid to common stockholders and typically does not have voting rights.

Annual Dividend

The total dividends that a company pays to its shareholders out of its profits over the course of a year.

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.