An Index Consists of the Following Securities

question 77

Multiple Choice

An index consists of the following securities.What is the value-weighted index return?

• A) 3.72 percent
• B) 5.09 percent
• C) 6.61 percent
• D) 7.07 percent
• E) 8.40 percent

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Definitions:

U.S. Price Level

A measure of the average prices of goods and services across the United States economy, indicating the purchasing power of money in the U.S.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade of goods and services with foreign countries.

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.

Aggregate Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level.