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A Simulation Model Goes One Step Further Than Possible with Analysis

question 74

Essay

A simulation model goes one step further than possible with analysis tools,because it can show how the process performs ________ over time.


Definitions:

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Current Consumption

The portion of income or resources that is spent on goods and services at the present time, as opposed to saving for future consumption.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased at given prices and within a given budget.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

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