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Suppose someone offers to pay you $1,000 in one year. Which of the following is/are correct? Select all that apply. a. If your time preference
Suppose someone offers to pay you $1,000 in one year. Which of the following is/are correct? Select all that apply.
a. If your time preference goes up (i.e., you become more impatient), the present value of that $1,000 for you would go down.
b. If inflation goes up, the present value of that $1,000 would go down.
c. If uncertainty in the economy goes up, the present value of that $1,000 would also go up.
d. If interest rates go up, the present value of that $1,000 would also go up.
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