The Saving Schedule Shown in the Diagram Below Would Shift

question 22

Multiple Choice

The saving schedule shown in the diagram below would shift downward if, all else equal:

• A) the average propensity to save increased at each income level.
• B) the marginal propensity to save rose at each income level.
• C) consumer wealth rose rapidly because of a significant increase in stock market prices.
• D) the real interest rate increased.

Recognize the role and influence of rating agencies like Morningstar on mutual funds.

Describe the characteristics, advantages, and limitations of exchange-traded funds (ETFs).

Explain the efficient market hypothesis and its implications for mutual fund investing.

Distinguish between various mutual fund options, including lifecycle funds, load vs. no-load funds, and index funds.

---

Definitions:

Physical Symptom

A noticeable change in the body's condition that indicates a disease or disorder, often perceived through pain, discomfort, or visible alteration.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, impacting daily functioning.

Racing Heart

A sensation where the heart beats rapidly, often perceived by the individual as heart palpitations, which can occur due to stress, anxiety, or other health conditions.

Schizophrenia

A significant psychological condition marked by alterations in thoughts, perceptions, feelings, speech, self-identity, and actions.