A Series of Cash Flows of Equal Amount,equally Spaced in Time

question 6

Multiple Choice

A series of cash flows of equal amount,equally spaced in time is called:

• A)a perpetuity
• B)a present value factor
• C)an annuity
• D)a consol
• E)an effective annual rate

Compare effective rates of interest of different compounding intervals to identify the most beneficial investment option.

Calculate the present value of ordinary annuities and annuities due.

Understand the concepts of demand-pull and cost-push inflation.

Compare and contrast the effects of anticipated vs unanticipated inflation.

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Definitions:

Price Elastic

Describes a situation where the demand for a product changes significantly in response to a change in the product's price.

Price Inelastic

A situation where the demand for a product does not change significantly in response to price changes.

Price Volatile

Characterizes a market or commodity whose price is subject to rapid, unexpected, and often large changes.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.