Which of the Following Displays a Direct, or Positive, Relationship

question 159

Multiple Choice

Which of the following displays a direct, or positive, relationship?

• A) a country's productivity and its standard of living
• B) a country's government spending and its tax rates
• C) a country's total population and its per-capita income
• D) a country's prices for its goods and services and its exports

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Definitions:

Expected Return

is the average return anticipated on an investment, factoring in the probability of each possible outcome.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market average.

Systematic Risk

The risk inherent to the entire market or market segment, indicating how fluctuations in the market can affect individual investments.

Risky Asset

An asset that carries a significant degree of risk of losing all or part of its value.