Changes in Business Activity Are

question 328

Multiple Choice

Changes in business activity are

• A) referred to as business fluctuations.
• B) referred to as the ebb and flow of business.
• C) always undesirable.
• D) caused by the changing seasons every year.

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Definitions:

Small U.S. Stocks

Refers to shares of smaller companies in the United States, typically characterized by a lower market capitalization.

Long-Term U.S. Treasury Bonds

Government bonds with maturities typically longer than 10 years, considered among the safest investment securities.

Market Risk Premium

The excess return that investors require for choosing to invest in the stock market over a risk-free asset.

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to follow the returns of a specific market index.