Suppose the Nominal Interest Rate Is Zero

question 74

Multiple Choice

Suppose the nominal interest rate is zero.In this situation,the present discounted value of a finite sequence of future payments is equal to which of the following?

• A)zero
• B)the sum of the all payments divided by the rate of inflation
• C)the average value of each payment
• D)the sum of all payments
• E) the square of the sum of all payments

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Definitions:

Fallacy Of Subjectivism

A logical fallacy that occurs when someone argues that something is true or good merely because it is true or good for them personally.

Fallacy

An error in reasoning that renders an argument logically invalid.

Religious Beliefs

Encompasses the diverse convictions and doctrines about the sacred, the divine, or the spiritual that influence moral, ethical, and social values.

Appeal To Force

A fallacious argument where one tries to persuade others to accept a conclusion by using threats or force rather than logic.