You place $100 in a bank account that pays 8%. If you remove the interest you receive each year you can turn your stock into a flow of
A) $108 per year.
B) $100 per year.
C) $80 per year.
D) $8 per year.
D
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The real costs of inflation to society include:
A. an increase in the general level of prices. B. higher relative prices. C. lost purchasing power of income. D. interference with long-term planning.
The growth rate of potential GDP is the sum of the growth rates of
a. labor force and population. b. labor force and labor productivity. c. labor force and capital stock. d. labor productivity and capital stock.
Money is an imperfect store of value when
a. the rate of inflation is high. b. the unemployment rate is high. c. gold prices are falling. d. businesses are failing due to bankruptcy.
If a firm experiences diminishing marginal productivity of labor, the marginal product
a. increases as total product increases. b. decreases as total product increases. c. increases as total product decreases. d. decreases as total product decreases.