The Interest Earned on a ____ Will Equal the Inflation

question 183

Multiple Choice

The interest earned on a ____ will equal the inflation rate plus a fixed assigned rate of return.

• A)revenue bond
• B)tax-exempt bond
• C)Treasury bill
• D)I-bonds

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Definitions:

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of scarce resources to satisfy needs and desires.

Principle of Neutrality

In economic policy, it suggests that decision-making and interventions should not favor any particular market outcome or resource allocation.

Economic Decisions

Choices made by individuals, businesses, or governments regarding the allocation of resources and the distribution of goods and services.

Total Burden

The full impact or total effect of something, often used in economics to refer to the combination of direct and indirect costs associated with a policy or tax.