The "Invisible Hand" Is

question 94

Multiple Choice

The "invisible hand" is

• A)used to describe the welfare system in the United States.
• B)a concept developed by Adam Smith to describe the virtues of free markets.
• C)a concept used by J.M.Keynes to describe the role of government in guiding the allocation of resources in the economy.
• D)a term used by some economists to characterize the role of government in an economy - inevitable but invisible.

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Definitions:

Perpetuity

An infinite series of equal payments made at fixed intervals, with no end date.

Withdrawals

The act of removing funds from a bank account, investment, or savings plan, often associated with personal or business financial management.

Retire

To retire means to withdraw from active working life, often due to reaching a certain age or financial independence that enables one to live without needing to earn a regular wage.

Cash Flow Stream

A cash flow stream is a series of cash flows associated with an investment over a period of time.