Automatic Stabilisers Are Defined as

question 139

Multiple Choice

Automatic stabilisers are defined as

• A)policy that has no multiplier effects.
• B)policy that stabilises without the need for action by the government.
• C)actions taken by Treasury to stabilise the economy.
• D)actions taken by the Prime Minister without Parliamentary approval to stabilise the economy.
• E)discretionary policy taken to stabilise the economy.

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Definitions:

Efficient Frontier

A concept in modern portfolio theory which represents a set of optimal portfolios that provide the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Indifference Curve

A curve connecting all portfolios with the same utility according to their means and standard deviations.

Expected Rate of Return

The anticipated return on an investment, comprising both the risk-free rate of return and additional returns expected for taking on extra risk.

Beta

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