Which Statement Is True

question 32

Multiple Choice

Which statement is true?

• A)During prosperity,federal government borrowing crowds out a substantial amount of private investment.
• B)During recessions,federal government borrowing crowds out a substantial amount of private investment.
• C)Neither statement is true.

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Definitions:

Balance Sheet

A financial statement that presents a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity, at a specific point in time.

Annuity

is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Compound Interest

Interest calculated on the initial principal as well as on the accumulated interest of previous periods of a deposit or loan.

Present Value

The value at present of future cash earnings or accumulations of money, determined by applying a pre-specified rate of financial return.