What concept describes how quickly an investment increases in value when interest is paid not only on the original amount invested, but also on the accumulated interest payments?

A. Present value.
B. Future value.
C. Compound interest.
D. Real rate of interest.


C. Compound interest.

Economics

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How would a decrease in the U.S. budget deficit affect the exchange rate in the market for dollars?

A) The exchange rate will not be affected by a change in the budget deficit. B) The exchange rate will decrease. C) The exchange rate will increase. D) The impact of the decrease in the budget deficit on the exchange rate cannot be predicted.

Economics

Persistent deficit after 1980 was almost entirely due to

A) higher share of expenditures in GDP. B) lower tax revenue. C) lower share of expenditures in GDP. D) Higher tax revenue.

Economics

The antitrust laws regulate all of the following business decisions except ____

a. collusion b. mergers c. monopolistic practices d. price discrimination e. wage levels

Economics

What is the imitation problem resulting from technological advance? How might a dominant firm respond to the threat from product innovation by a smaller firm?

What will be an ideal response?

Economics