Which of the Following Economic Perspectives Would Be Most Opposed

question 264

Multiple Choice

Which of the following economic perspectives would be most opposed to a balanced-budget rule?

• A) monetarism
• B) mainstream economics
• C) rational expectations
• D) new classical economics

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Definitions:

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.

Bonds

Financial instruments representing loans made by an investor to a borrower, typically corporate or governmental, which are expected to be paid back with interest.

Sharpe Measure

An indicator of the performance of an investment compared to a risk-free asset, adjusted for its risk, calculated as the difference in returns divided by the standard deviation of the investment.