Lecture Issues in economics today - Chapter 4: Interest rates and present value
Lecture Issues in economics today - Chapter 4: Interest rates and present value
After studying this chapter you will be able to: Describe what interest rates are and differentiate nominal from real interest rates, describe the use of present value calculations in determining the value of a payment stream, apply the tool of present value when thinking about economic decisions where the costs and benefits of the decisions happen at different times.