Which of the Following Is TRUE

question 16

Multiple Choice

Which of the following is TRUE?

• A)the average nominal interest rate on the debt was higher in 1980 than in 2010
• B)the real interest rate was higher in 1980 than in 2010
• C)real interest payments as a percentage of government spending were higher in 1980 than in 2010
• D)nominal interest payments as a percentage of government spending were lower in 1980 than in 2010
• E)none of the above

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset that represent an equal proportion in the distributing of any profits, if any are declared, in the form of dividends.

Capital Gain

Capital Gain is the profit earned from the sale of an asset or investment when the selling price exceeds the purchase price.

Dividends

Payments made by a corporation to its shareholder members, reflecting the earnings of the company distributed among its shareholders.