The First Thing You Need to Determine in Order to Reach

question 32

Multiple Choice

The first thing you need to determine in order to reach an investment goal after accumulating the capital is the:

• A)rate of return.
• B)rate of savings.
• C)rate of inflation.
• D)rate of consumption.
• E)rate of interest.

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Definitions:

Functional Finance

A theory that government budgetary policy should primarily focus on ensuring economic stability and stimulating demand to achieve full employment, rather than solely aiming to balance budgets.

National Debt

The total amount of money that a country's government has borrowed by various means.

Crowding Out

The displacement of interest-sensitive private investment that occurs when higher government deficits drive up market interest rates.

Expansionary Gap

An Expansionary Gap exists when an economy’s output exceeds its potential output, often leading to inflationary pressures.