When the Annual Interest Rate Stays the Same, More Frequent

question 86

True/False

When the annual interest rate stays the same, more frequent interest compounding helps savers earn more interest over the course of the year.

---

Definitions:

Taxicab Rides

The service provided by a vehicle licensed to transport passengers in return for payment, usually determined by a meter.

Economic Theory

A framework or set of principles explaining how economies function and how economic agents interact.

Quota Rent

The extra profit that producers can make when supply is artificially restricted by an import quota.

Demand Price

The highest price that consumers are willing to pay for a good or service at a given quantity.