If the real discount rate is 8% and the inflation rate is 8%, what is the interest rate that will be used to find the present worth of a series of cash flows that are in then-current dollars? %

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 37P: Rosalie the Retiree knows that when she retires in 16 years, her company will give her a one-time...
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If the real discount rate is 8% and the inflation rate is 8%, what is the interest rate that will be used
to find the present worth of a series of cash flows that are in then-current dollars?
%
Transcribed Image Text:If the real discount rate is 8% and the inflation rate is 8%, what is the interest rate that will be used to find the present worth of a series of cash flows that are in then-current dollars? %
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