Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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