Refer to the Accompanying Data (All ?Gures in Billions of

question 230

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Personal Taxes } & \$ 40 \\\hline \text { Social Security Contributions } & 15 \\\hline \text { Taxes on Production and Imports } & 20 \\\hline \text { Corporate Income Taxes } & 40 \\\hline \text { Transfer Payments } & 22 \\\hline \text { U.S. Exports } & 24 \\\hline \text { Undistributed Corporate Profits } & 35 \\\hline \text { Government Purchases } & 90 \\\hline \text { Gross Private Domestic Investment } & 75 \\\hline \text { U.S. Imports } & 22 \\\hline \text { Personal Consumption Expenditures } & 250 \\\hline \text { Consumption of Fixed Capital (depreciation) } & 25 \\\hline \text { Net Foreign Factor Income } & 10 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$$ Refer to the accompanying data (all ?gures in billions of dollars) . NI is

• A) $362.
• B) $382.
• C) $447.
• D) $402.

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Definitions:

Compounded Monthly

Interest calculation method where the interest is added to the principal balance monthly, leading to interest accruing on the previously accumulated interest.

Equal Monthly Payments

Equal monthly payments are fixed payments made each month on a loan or mortgage over a set period of time, designed to pay off both interest and principal gradually.

Car Loan

A financial loan issued for the specific purpose of purchasing a car, typically involving interest and a repayment plan over a set period.

Compounded Semi-Annually

A method of calculating interest where the calculation is done twice a year, and the interest from the first half is added to the principal for the second half calculation.