The Fact That Severe Fluctuations in Inflation and Unemployment Are

question 200

Multiple Choice

The fact that severe fluctuations in inflation and unemployment are socially undesirable helps make the case for

• A)a "hands off" policy by the government.
• B)fixed prices and wages.
• C)active government stabilization policy.
• D)restrictions on imports from low wage countries.

Calculate the future value of investments with varying rates, terms, and compounding periods.

Determine the present value of a future amount considering the time value of money.

Understand the effect of inflation on the value of money and calculate the equivalent future or past value of an amount.

Apply the concept of discounting to determine the present value of future cash flows.

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