According to the Definitions of Private and Public Saving,if Y,C,and

question 21

Multiple Choice

According to the definitions of private and public saving,if Y,C,and G remained the same,an increase in taxes would

• A)raise both private and public saving.
• B)raise private saving and lower public saving.
• C)lower private saving and raise public saving.
• D)lower private and public saving.

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Definitions:

Holding-period Return

The overall profit earned from owning an asset or a collection of assets for a certain duration, taking into account both earnings and growth in value.

Dividend

Money distributed by a corporation to its shareholders, often as a share of the earnings.

Reward-to-volatility Ratio

A ratio used to assess the return of an investment relative to its risk, calculated by dividing the excess return of an investment by its standard deviation.

Standard Deviation

A statistical measure of the dispersion of a set of data from its mean, often used to quantify the risk associated with a particular investment.