Which of the Following People Purchased the Correct Asset to Meet

question 64

Multiple Choice

Which of the following people purchased the correct asset to meet his or her objective?

• A)Michelle wanted to be a part owner of Mamma Rosa's Pizza,so she purchased a bond issued by Mamma Rosa's Pizza.
• B)Tim wanted a high return,even if it meant taking some risk,so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.
• C)Jennifer wanted to buy equity in Honda,so she purchased bonds sold by Honda.
• D)All of the above are correct.

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Definitions:

Forecasting Economic Variables

The process of making predictions about future economic activity based on historical and current data, using statistical models and analysis techniques.

Disinflation

Occurs when the rate of inflation declines.

Monetarist View

An economic theory which argues that management of the nation's money supply is the key to controlling inflation and other forms of economic instability.

Economic Stabilization

Efforts or policies aimed at maintaining economic growth, controlling inflation, and reducing unemployment to achieve a stable economy.