1.Which of the following statements is FALSE?

A.

All the formulas for computing present values of annuities and perpetuities are based upon discounting all of the cash flows at the same rate.

B.

An inverted yield curve is often interpreted as a positive forecast for economic growth.

C.

The rate of growth of your purchasing power is determined by the real interest rate.

D.

An inverted yield curve generally signals an expected decline in future interest rates.