The Interest Rate Used in Present Value Calculations Is Called

question 22

Multiple Choice

The interest rate used in present value calculations is called the

• A)Discount rate
• B)Hurdle rate
• C)Compound rate
• D)None of these answer choices are correct

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Definitions:

Indifference Curve

A graph showing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Utility

In economics, a measure of satisfaction, usefulness or value that an individual gains from consuming goods and services.

Consumption Bundle

A combination of goods and services selected by a consumer for personal use.

T-Shirts

A basic item of clothing characterized by short sleeves, generally made of cotton, and lacking a collar.