Suppose the Average Value of In-Kind Transfers Increases by $2,000

question 196

Multiple Choice

Suppose the average value of in-kind transfers increases by $2,000 from 2010 to 2011.The poverty rate

• A) is more likely to understate the true level of poverty.
• B) is more likely to overstate the true level of poverty.
• C) will increase by $2,000 divided by the poverty level.
• D) Both b and c are correct.

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Definitions:

Interest Rate

The fraction of a loan that is assessed as interest for the borrower, often shown as a yearly percentage.

Interest Rate

The cost of borrowing money, expressed as a percentage of the amount borrowed.

Present Value

The current financial valuation of a sum of money due in the future or stream of income, based on a specific interest rate.

Future Value

The worth of an investment or cash flow at a specified future date, based on an assumed rate of growth over time.