The notion of compound interest means that a) any amount you borrow will accumulate more and more interest, no matter how much you pay back. O b) your interest will grow, but never at a rate higher than 13%. Oc) the demand for loanable funds is upward sloping. Og if you leave a lump sum (some dollar amount) in the bank for some period, it will accumulate interest both on the principal and on any accumulated interest. if you leave a lump sum (some dollar amount) in the bank for some period, it will only accumulate interest on the principal (the original amount you deposited).

The notion of compound interest means that a) any amount you borrow will accumulate more and more interest, no matter how much you pay back. O b) your interest will grow, but never at a rate higher than 13%. Oc) the demand for loanable funds is upward sloping. Og if you leave a lump sum (some dollar amount) in the bank for some period, it will accumulate interest both on the principal and on any accumulated interest. if you leave a lump sum (some dollar amount) in the bank for some period, it will only accumulate interest on the principal (the original amount you deposited).

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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