When Modeling Aggregate Demand, the Question of Resources Is

question 19

Multiple Choice

When modeling aggregate demand, the question of resources is

• A) unimportant.
• B) set aside temporarily.
• C) a central issue.
• D) irrelevant.
• E) too difficult to address.

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Definitions:

Present Value

The immediate value of a future amount of money or stream of payments, given a set rate of return.

Annuity

An investment vehicle that disburses a fixed series of payments to an individual, typically serving as an income provision for those who have retired.

Discount Rates

The interest rate used to discount future cash flows to their present values in order to evaluate investments or projects.

EAR

Effective Annual Rate, which is the interest rate on a loan or financial product restated from the nominal interest rate as an annual rate compounded annually.