If Real Output Grows at 3 Percent Per Year and the Inflation

question 113

True/False

If real output grows at 3 percent per year and the inflation rate is 3 percent per year then government debt can grow by 6 percent per year and not increase the ratio of debt to income.

Comprehend the relationship between mineral properties and their chemical compositions.

Understand and correct common misconceptions about how often interest is compounded annually.

Calculate future savings based on various compounding intervals.

Understand the process and importance of reconciling a checkbook with a bank statement.

---

Definitions:

Disposable Income

The capital households have to spend and save once income taxes have been cleared.

Disposable Income

The financial resources that households have at their disposal for spending and saving after income tax deductions.

Savings

Money set aside for future use rather than spending immediately, often in accounts designed for long-term growth or security.

Disposable Income

Post-tax income households possess for saving or spending purposes.