A decrease in gross domestic product $($GDP$)$ lasting one quarter indicates an economic:

A

Contraction

B

Recession

Depression

Expansion

Which of the following statements concerning the tax treatment of mutual funds is true?

A There are no mutual funds that avoid federal income tax.

B Dividends, income, and capital gains that are reinvested into the mutual fund are not subject to taxation.

There are generally no significant tax penalties for early withdrawals.

Investors who sell shares of one fund and invest in another fund of the same family will be taxed.