Author Question: How is capital valued? What will be an ideal response?[br][br][b][color=#347235]Question ... (Read 92 times)

jenna1 · **on:** Jun 29, 2018

How is capital valued?

What will be an ideal response?

Question 2

Which of the following describes the accuracy of the Consumer Price Index?

A) Changes in the CPI overstate the true rate of inflation.
B) Changes in the CPI understate the true rate of inflation.
C) Changes in the CPI are unrelated to the true rate of inflation.
D) Changes in the CPI accurately reflect the true rate of inflation.

Dnite · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The value of capital is measured by the value of services that it will render the firm over time.

Answer to Question 2

A