Which of the Following Is True

question 147

Multiple Choice

Which of the following is true?

• A) The supply of credit and the quantity of real output are unrelated.
• B) The supply of credit and labor demand are negatively correlated.
• C) The supply of credit and the rate of inflation are positively correlated.
• D) The supply of credit and the quantity of real output are positively correlated.

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Definitions:

Efficient Frontier

A portfolio optimization concept that outlines the set of optimal portfolios offering the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Correlation

A statistical measure that describes the extent to which two variables move in relation to each other, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Portfolio Weight

The proportion of the total value of an investment portfolio that is attributed to each individual investment.

Total Value

The summation of all assets or investments owned by an individual or entity, reflecting overall worth.