One Long-Term Consequence of the New Deal Was That

question 43

Multiple Choice

One long-term consequence of the New Deal was that

• A) the national government assumed responsibility for the basic welfare of the people.
• B) the government substantially transformed the distribution of power within American capitalism.
• C) it brought about a massive, long-term increase in federal power.
• D) the government effectively redistributed the wealth among the American people.
• E) the influence of the government on the economy became greater than that of private businesses.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, often referred to as market risk, which cannot be eliminated through diversification.

Coefficient of Variation Risk

A statistical measure used to assess the risk of an investment by calculating the ratio of the standard deviation to the mean return, indicating variability in relation to the expected return.

Unsystematic Risk

Also known as specific risk, it refers to the risk associated with individual assets, distinct from the market's overall movements.

Systematic Risk

The inherent risk associated with the entire market or market segment, which cannot be mitigated through diversification.