Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A)In 1870,real income per person was higher in the United States than in any other country at that time.
• B)Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States.
• C)Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan.
• D)None of the above are correct.

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Definitions:

Effective Interest Rate

The actual return on an investment or the actual cost of a loan, taking into account the compounding of interest over time, as opposed to the nominal interest rate.

Short-Term Bank Loan

A loan obtained from a bank that has a short repayment period, typically less than one year.

Best Course of Action

The most suitable or advantageous strategy or decision to take in a given situation.

Annual Rate

The interest rate for a whole year, as opposed to a rate for a shorter period.