If I Can Invest a Dollar Today and Earn Interest

question 56

Multiple Choice

If I can invest a dollar today and earn interest on it, then it should be worth _________ in the future.

• A) Less
• B) The same as
• C) More
• D) Either less or the same as
• E) Either the same as or more

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Definitions:

Current Account

A segment of a nation's balance of payments that comprises the balance of trade, net primary income, and net secondary income.

Deficit

The amount by which expenses or costs exceed income or revenues, especially in the context of government budgets.

Surplus

A condition where the quantity supplied of a good exceeds the quantity demanded at the current price.

Inflation

The pace at which average prices for products and services climb, reducing the value of money.