Compounding is:
A. the process of accumulation of additional interest paid on interest that has already been earned.
B. the process of adding the percentage of interest times your initial principal yearly.
C. the process of deposits steadily increasing a set amount annually.
D. None of these statements is true.
A. the process of accumulation of additional interest paid on interest that has already been earned.
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The overall effect of accounting for purchases of foreign goods in GDP reduces GDP
a. True b. False Indicate whether the statement is true or false
Refer to Table 3.1. Suppose there is a monthly tax of $100 on the house that you rent. How does this affect the number of hours you spend mowing the lawn?
A. Less time would be spent mowing the lawn because the cost of mowing the lawn would increase.
B. Less time would be spent mowing the lawn because the benefit of mowing the lawn would decreases.
C. More time would be spent mowing the lawn because the net benefits of mowing the lawn would increase.
D. There would be no change in the amount of time spent mowing the lawn.
The classical model assumes that
A. people have money illusion. B. wages and prices are flexible. C. wages are flexible but prices are not. D. imperfect competition predominates in most markets.
Because investment, consumption expenditure, and net exports are interest-sensitive components of expenditure, a ________ in the federal funds rate brings ________ in ________
A) fall; a decrease; aggregate supply B) rise; an increase; aggregate supply C) fall; an increase; aggregate demand D) rise; an increase; aggregate demand E) fall; a decrease; aggregate demand