Which One of These Statements Correctly Reflects Historical History for the Period

question 21

Multiple Choice

Which one of these statements correctly reflects historical history for the period 1926-2015?

• A)Large-company stocks have never returned more than 40 percent in a single year.
• B)There is a direct relationship between the annual returns on large-company stocks and long-term government bonds.
• C)U.S.Treasury bills have had a positive rate of return every single year.
• D)The return on U.S.Treasury bills has exceeded the rate of inflation every single year.
• E)The rate of inflation as measured by the consumer price index has been positive every single year.

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Definitions:

Unemployment Rate

A measure of those in the labor force who are without employment and are searching for a job.

Tax Receipts

The revenue collected by the government through various forms of taxation.

Government Expenditures

Financial spending by the government on goods, services, and public projects, including healthcare, education, and infrastructure.

Built-In Stability

refers to automatic fiscal policies and regulations that stabilize economic fluctuations without additional government intervention.