The interest rate is 8 percent. The present value of $110 three years from now equals

In the bond market, the buyer is considered to be

A) the lender. B) the borrower. C) the lender or the borrower, depending upon the use to which the funds are put. D) the lender or the borrower, depending upon whether interest rates are rising or falling.

Inflation reduces the multiplier effect by reducing consumers' wealth and purchasing power

a. True b. False Indicate whether the statement is true or false