A Consumption Function Is a Statement That Shows the Relationship

question 178

True/False

A consumption function is a statement that shows the relationship between interest rates and consumption.

---

Definitions:

Percent Equivalent

A value that represents a part of a whole expressed as a percentage.

Compound Interest

A way of determining interest that takes into account the original principal and adds the interest that has been accrued from previous periods.

Compound Interest

Calculation of interest on both the principal amount initially provided or borrowed, plus the interest that has accumulated over earlier periods.

Compound Interest

The addition of interest to the principal sum of a loan or deposit, where the interest that has been added also earns interest from that point on.