Everything Else Equal, the Greater the Number of Compounding Periods

question 38

True/False

Everything else equal, the greater the number of compounding periods per year, the greater the effective rate of return that is earned on an investment. 

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Definitions:

Inferior

A type of good for which demand decreases as the income of consumers increases.

Normal Good

A good whose demand increases as the income of consumers increases, and vice versa.

Normal Good

A type of good for which demand increases as the income of consumers increase, demonstrating a positive correlation between income and demand.

Inferior Good

A type of product whose demand decreases when the income of consumers increases, inverse to normal goods.