Historical Data Representing Consumption and Disposable Income Reveals That

question 59

Multiple Choice

Historical data representing consumption and disposable income reveals that

• A)during the 1930s, U.S.saving was at a high level.
• B)U.S.citizens increased saving during World War II.
• C)there is no systematic relationship between the two.
• D)consumption rises faster than disposable income during recessions.

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Definitions:

Resources

are materials, money, staff, and other assets that can be drawn on by a person or organization to function effectively.

Indexed Equity

A type of equity investment that tracks the performance of a market index, aiming to replicate its returns and risk characteristics.

Mutual Funds

Financial instruments that aggregate funds from various investors to acquire a varied collection of equities, debts, or alternative assets.

Consumer Price Index

An index that measures the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.