1. What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
She is also curious about the time value of money concepts. Specifically, she has the following questions about these concepts:
2. Why are consumers considered to be risk averse? What methods could used to deal with risk?
3. It has been said that a dollar received today is worth more than a dollar received tomorrow. What does this mean and what is the significance to the economy?
4.What is the difference between the present value of a future sum of money and the future value of a present sum of money? What is the significance of these concepts to economics?
5. If you deposited $1,000 in an account paying 6% interest compounded annually, how long would it take to double?