To the nearest 0.01, what is the present value of each of the following income streams (expressed in units of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%? c) m1 =−100, mt =100 for all t =2,...,∞
To the nearest 0.01, what is the present value of each of the following income streams (expressed in units of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%? c) m1 =−100, mt =100 for all t =2,...,∞
Chapter13: Inflation
Section: Chapter Questions
Problem 12SQ
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To the nearest 0.01, what is the present value of each of the following income streams (expressed in units
of consumption goods), when the real interest rate is r =5%, and when the real interest rate is r =1%?
c) m1 =−100, mt =100 for all t =2,...,∞
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