Which of the Following Is True

question 435

Multiple Choice

Which of the following is true?

• A) In 2002, national defense accounted for more than half of federal spending.
• B) Federal spending on national defense has increase rapidly during the last several decades.
• C) Federal spending on health care programs such as Medicare and Medicaid has increased rapidly during the last several decades.
• D) Federal spending in the aftermath of hurricane Katrina expanded over 50%.

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Definitions:

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Future Value

The amount of money an investment is expected to be worth in the future, considering interest or capital gains.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Interest

A charge for borrowed money, generally a percentage of the amount borrowed, paid by the borrower to the lender over a set period.