The Sum of the Unemployment Rate and the Inflation Rate

question 84

Multiple Choice

The sum of the unemployment rate and the inflation rate is known as:

• A)the macroeconomic index.
• B)the mortality rate.
• C)the market index.
• D)the misery index.
• E)a coincident indicator.

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Definitions:

Dividend Growth Model

A method for valuing the price of a stock by using predicted dividends and discounting them back to present value.

Future Dividends

Expected payments made by a corporation to its shareholders out of its future earnings.

Risk Premium

The extra return expected for taking on additional risk, over and above the risk-free rate of return.