Q. Your financial advisor tells you that if you earn the historical rate of return on a certain mutual fund, then in three years your $20,000 will grow to $23,152.50. What rate of interest does your financial advisor expect you to earn?

Q. One government strategy to provide for economic stablity and encourage economic growth is to provide reductions or tax incentives for individuals and businesses. an alternative approach is to increase government spending two accomplish these goals. Which strategy do you believe would be more effective in the short term for accomplishing these goals?