If a Nation's Gini Coefficient Is Rising Over Time, It

question 12

Multiple Choice

If a nation's Gini coefficient is rising over time, it is an indicator of:

• A) an increase in the poverty rate.
• B) a decrease in the poverty rate.
• C) an increase in income inequality.
• D) a decrease in income inequality.

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Definitions:

Compound Interest Table

A chart used to determine the future value of an investment based on the principle of compound interest, where interest is earned on both the initial principal and the accumulated interest.

Compounded Annually

Compounded Annually describes the process where interest is calculated on the principal sum and any accumulated interest from previous periods once a year.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate, representing its legal value.

Compounded Annually

The process where interest is calculated once per year on the initial principal, including all interest from previous periods.