For Markets to Be in Equilibrium, That Is, for There

question 63

Multiple Choice

For markets to be in equilibrium, that is, for there to be no strong pressure for prices to depart from their current levels,

• A) the past realized rate of return must be equal to the expected future rate of return; that is, .
• B) the required rate of return must equal the past realized rate of return; that is, r = .
• C) the expected rate of return must be equal to the required rate of return; that is, = r.
• D) all of the above statements must hold for equilibrium to exist; that is = r = .
• E) none of the above statements is correct.

---

Definitions:

Biological Treatments

Medical approaches to treating psychological disorders that involve medications and physical interventions to alleviate symptoms.

Right to Refuse

The legal or ethical right of individuals to reject proposed medical treatments, interventions, or procedures.

Authority of Psychologists

The recognized power or right of psychologists to act in certain capacities due to their professional expertise, training, and ethical guidelines within the field of psychology.

Psychologists and Psychiatrists

Professionals specializing in mental health, where psychologists primarily provide therapy and assessments, and psychiatrists are medical doctors who can diagnose conditions and prescribe medications.