You Read That a Savings Account Offers a 10% Yield,compounded

question 12

Multiple Choice

You read that a savings account offers a 10% yield,compounded semi-annually.Your effective annual yield then is

• A)10.25%.
• B)11.00%.
• C)9.75%.
• D)5.05%.

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Definitions:

Business Cycle

The economic fluctuations experienced over time, characterized by periods of expansion (growth) and contraction (recession) in economic activity.

Legislative Action

The process by which a legislative body takes official steps to introduce, amend, pass, or reject laws and regulations.

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending, often due to higher interest rates.

Government Spending

Refers to the total expenditure incurred by the government on various goods, services, and projects to fulfill its economic and social objectives.