An Investment Account That Increases from $1,000 to $1,005 in a Month

question 79

Multiple Choice

An investment account that increases from $1,000 to $1,005 in a month is earning approximately __ percent annual interest.

• A)0.5
• B)5.0
• C)6.0
• D)10.0
• E)11.0

Understand the factors determining the market value of a bond.

Understand the relationship between disposable income and consumption.

Comprehend the concept of autonomous consumption.

Grasp the significance of the marginal propensity to consume (MPC) and save (MPS).

---

Definitions:

Efficiency Rate

A measurement of the ability to accomplish a task with a minimal amount of waste, effort, or inefficiency.

Listen

The act of actively paying attention to sounds or spoken words to understand and obtain information.

Listening Process

The active engagement and mental processing involved in receiving, understanding, and responding to spoken messages.

Analyze

The process of examining components or data methodically to understand relations, causes, and effects, thus deriving insights.