Which One of the Following Statements Correctly Applies to the Period

question 76

Multiple Choice

Which one of the following statements correctly applies to the period 1926-2010?

• A)Large-company stocks earned a higher average risk premium than did small-company stocks.
• B)Intermediate-term government bonds had a higher average return than long-term corporate bonds.
• C)Large-company stocks had an average annual return of 14.7 percent.
• D)Inflation averaged 2.6 percent for the period.
• E)U.S. Treasury bills had a positive average real rate of return.

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Definitions:

Demand Schedules

A table that lists the quantity of a good that consumers are willing and able to purchase at various prices.

Supply Of Calculators

The total quantity of calculators that manufacturers are willing and able to sell at various price levels, holding all else equal.

Lower Cost

Refers to the reduction in expenses required to produce goods and services, improving profitability.

Surplus

An amount of something left over when requirements have been met; in economics, it typically refers to excess supply over demand.