Professor Jeremy Siegel, of the University of Pennsylvania, Conducted Research

question 91

Multiple Choice

Professor Jeremy Siegel, of the University of Pennsylvania, conducted research that showed that:

• A)Over the long run, stocks are less risky than bonds.
• B)Over the long run, bonds are less risky than stocks.
• C)Over the long run, bonds frequently outperform stocks.
• D)Investors should only own stocks for short periods of time to maximize returns.

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Definitions:

Credit Demand

The desire or willingness of consumers and businesses to borrow money at a given interest rate.

Discretionary Policy

Economic or fiscal policy based on judgment and decision-making in response to changing economic conditions, rather than set by predetermined rules.

National Saving

The total amount of savings generated within a country, including both private savings by households and public savings by the government.

Interest Rates

The cost of borrowing money or the return on investment for savings, typically expressed as a percentage of the principal amount.