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In 1994, the state of California suffered a devastating earthquake. To help pay for the damages, the state raised its sales tax by one cent per dollar of expenditure on most consumer goods. This state sales tax is an example of what economists call:
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.
Present Value
The actual value today of future monetary amounts or cash flow series, determined by a specified rate of return.
Future Amounts
The value of a current asset or amount of money at a specified future date, considering interest or inflation.
Future Value
The value of an investment at a specified date in the future that is equivalent in value to a specified sum today after being compounded over time.
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