Which of the following statements is correct?
a. Interest would not exist in a nonmonetary economy.
b. The present value of a future dollar payment is directly related to the interest rate.
c. The present value of a fixed dollar payment to be received in the future will decline as the length of the time before the payment will be received increases.
d. During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.
C
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In a cartel, how does the number of firms affect the likelihood that the cartel will be able to successfully maintain a high price?
What will be an ideal response?
Which of the following, other things the same, would make the price level increase and real GDP decrease?
a. long-run aggregate supply shifts left. b. long-run aggregate supply shifts right. c. aggregate demand shifts right d. aggregate demand shifts left.