The Market Timing Form of Active Portfolio Management Relies on __________

question 37

Multiple Choice

The market timing form of active portfolio management relies on __________ forecasting and the security selection form of active portfolio management relies on __________ forecasting.

• A) macroeconomic; macroeconomic
• B) macroeconomic; microeconomic
• C) microeconomic; macroeconomic
• D) microeconomic; microeconomic

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Definitions:

MPC

Marginal Propensity to Consume, which is the proportion of additional income that a consumer spends on goods and services as opposed to saving it.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used in the production of goods and services.

Money Supply

The overall sum of money available in an economy at a designated moment.

Government Expenditures

Spending by government agencies on goods, services, and projects to fulfill public policies, which can influence a nation's economic performance.