Which of the Following Is Not a Characteristic of an Annuity

question 67

Multiple Choice

Which of the following is not a characteristic of an annuity?

• A)It is a series of equal payments.
• B)It earns an equal interest rate each interest period.
• C)Interest is compounded annually.
• D)Interest periods are of equal length.

---

Definitions:

Consumption Function

An economic formula representing the relationship between total consumption and gross national income, indicating how income changes affect spending habits.

Aggregate Income

The total income earned by all factors of production in an economy over a specific time period, including wages, rents, interest, and profits.

Aggregate Consumption

The total amount of goods and services consumed in an economy over a given period of time.

Consumption Function

A formula that expresses the relationship between total consumption and gross national income.