A Person Who Can Save at 8 Percent Interest Decided

question 66

Multiple Choice

A person who can save at 8 percent interest decided to subscribe to a magazine.A 1-year subscription costs $12, a 2-year subscription $22.What is the cost to her of the second year?

• A)$10.
• B)$10.80.
• C)$9.60.
• D)$11.
• E)$11.40.

---

Definitions:

Welfare Outlays

Expenditures made by governments aimed at supporting the wellbeing of citizens, including benefits for the unemployed, poor, disabled and elderly.

Discretionary Fiscal Policy

Government policy actions, through spending or taxation, aimed at influencing economic conditions based on current economic assessments.

Budget Deficit

The financial situation where an entity's expenses exceed its revenues within a given timeframe.

Annually Balanced Budget

Budget philosophy prior to the Great Depression; aimed at matching annual revenues with outlays, except during times of war.