Which of the Following Is a Positive Statement

question 30

Multiple Choice

Which of the following is a positive statement?

• A)The unemployment rate of 7 percent or higher is a national disgrace.
• B)Unemployment is a less important problem than inflation.
• C)When the national unemployment rate is 7 percent,the unemployment rate among inner-city youth is often close to 40 percent.
• D)Unemployment and inflation are equally important problems.
• E)An inflation rate of 7 percent is too high.

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Definitions:

Invests

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Present Value

The present value of a sum of money or sequence of cash flows expected in the future, calculated using a certain rate of return.

Discounting

A financial process of determining the present value of a payment or a series of payments that will be made in the future.

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.