The 2009 Stimulus Package Differed from Traditional Republican Economic Stimulus

question 5

Multiple Choice

The 2009 stimulus package differed from traditional Republican economic stimulus efforts in being primarily composed of

• A) tax cuts.
• B) higher export tariffs.
• C) spending increases.
• D) public works projects.

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Definitions:

Asset Allocation

The strategy of distributing investments among various classes of assets to manage risk and enhance returns.

Abnormal Return

Abnormal Return is the difference in the actual return of a security over a set period of time from its expected return based on the market or model prediction.

Bonds

Fixed income investment products that represent a loan made by an investor to a borrower, typically corporate or governmental, which pays periodic interest payments and the return of the principal at maturity.

Jensen's Measure

A performance evaluation metric that measures the excess return of an investment portfolio over the predicted return, adjusted for market risk.