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Author Question: If inflation turns out to be higher than was anticipated, debtors are helped because A) the real ... (Read 38 times)

jhjkgdfhk

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on: Jul 1, 2018
If inflation turns out to be higher than was anticipated, debtors are helped because
 
  A) the real present value of their payments increases.
  B) the real present value of their payments decreases.
  C) the nominal present value of their payments increases.
  D) the nominal present value of their payments decreases.

Question 2

Four banks are offering the same interest rate of 4. Where do you invest?
 
  A) Bank A compounds interest on a yearly basis.
  B) Bank B compounds interest on a monthly basis.
  C) Bank C compounds interest on a daily basis.
  D) I am indifferent between banks.
Microeconomics ¦ Perloff ¦ 8th Edition
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zoeyesther

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

C


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jhjkgdfhk

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Reply #2 on: Jul 1, 2018
Thank you :)


zoeyesther

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Reply #3 on: Jul 1, 2018
Happy to help you


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