Which Component of U

question 189

Multiple Choice

Which component of U.S.household spending has grown the most over the past ten years?

• A)taxes
• B)savings
• C)spending on services
• D)spending on nondurable goods
• E)spending on durable goods

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Definitions:

Annuity

A financial instrument that provides a consistent series of payments to a person, often utilized as a source of income for retired individuals.

Equivalent Cash Flows

Streams of equal value cash flows occurring at regular intervals.

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor to proceed with the project.

Present Value

The present value of a future amount of money or series of cash flows, using a certain return rate.