Which Economic Trend Below Is Not Likely to Exist in the Future

question 66

Multiple Choice

Which economic trend below is not likely to exist in the future?

• A)Inflation at annual rates of 1-3%
• B)Persistent business cycles
• C)A tax system with high tax rates
• D)A tax system that does not favor some activities over others

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Definitions:

Unamortized Premium

The portion of a bond's premium that has not yet been gradually written off or expensed over the bond's life to date.

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.