Discounting allows comparisons of

a. money values and physical values.
b. interest payments on borrowed funds and interest payments on loaned funds.
c. money values received at different times.
d. the quantities of outputs produced by different types of capital goods.

c

Economics

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Contractionary policies are government policies that

A) decrease aggregate supply. B) increase aggregate supply. C) increase aggregate demand. D) decrease aggregate demand.

Economics

Suppose the economy experiences a recessionary gap. Expansionary monetary policy will

A) increase interest rates and increase the bond prices. B) increase interest rates and decrease the bond prices C) decrease interest rates and increase the bond prices D) decrease interest rates and decrease the bond prices

Economics