Which of the Following Statements Is Correct

question 113

Multiple Choice

Which of the following statements is correct?

• A)NASDAQ is an important stock exchange in the United States.
• B)The demand for a corporation's stock is largely based on people's perception of the corporation's profitability in the future.
• C)Compared to the Standard & Poor's 500 Index,the Dow Jones Industrial Average incorporates the stock prices of a much smaller number of corporations.
• D)All of the above are correct.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country using constant prices.

Balanced Budget Amendment

A proposed amendment to a government's constitution that requires the annual budget to be balanced, so that expenditures do not exceed revenues.

Crowding-out

is an economic theory suggesting that increased government spending leads to a reduction in private sector spending, potentially due to higher interest rates.

Full Employment

A situation in an economy when all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.