Which of the Following Is Not a Typical Property of a Discount

question 12

Multiple Choice

Which of the following is not a typical property of a discount function $d ( t )$ ?

• A) \(d ( t )\) is non-decreasing in the maturity \(t\) .
• B) \(d ( t )\) is non-increasing in the maturity \(t\) .
• C) \(d ( t )\) decreases as the zero-coupon rate \(z ( t )\) for maturity \(t\) increases.
• D) \(d ( t )\) is independent of compounding convention.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate reflection of an economy's size and growth.

Inventory Adjustments

Changes made to the recorded amount of inventory to account for discrepancies, damages, losses, or theft.

Aggregate Expenditure Line

A graphical representation in macroeconomics that shows the total spending on goods and services in an economy at various levels of income.

Real GDP

Gross Domestic Product adjusted for inflation, representing the value of all goods and services produced over a specific time period in real terms.