Which Is the Most Correct Statement About the 'Invisible Hand

question 62

Multiple Choice

Which is the most correct statement about the 'invisible hand'?

• A) The 'invisible hand' always ensures both equity and efficiency
• B) The 'invisible hand' never ensures either equity or efficiency
• C) The 'invisible hand' is more effective at ensuring equity than it is at ensuring efficiency
• D) The 'invisible hand' is more effective at ensuring efficiency than it is at ensuring equity

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Definitions:

Real Rate

The inflation-adjusted interest rate, representing the actual cost of borrowing or the genuine return on an investment.

Buying Power

The amount of goods or services that can be purchased with a unit of currency or by consumers, reflecting the value of money.

Real Returns

The profit or income generated from an investment, adjusted for inflation, to reflect the true purchasing power of the earnings.