____28.An increase in the anticipated (or expected) rate of inflation will cause the nominal interest rate toa.increase by less than the change in the anticipated inflation rate.b.increase by the same amount as the change in the anticipated inflation rate.c.decrease by more than the change in the anticipated inflation rate.d.decrease by the same amount as the change in the anticipated inflation rate.e.stay the same.
____29.If the nominal interest rate is 14 percent and the real interest rate is 6 percent, then the expected rate ofinflation is
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____30.Profits are income to
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____31.What is the approximate present value of $8,000 received four years from today if the interest rate is 12percent?
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____32.What is the present value of a future income stream of three $12,000 payments to be received one, two, andthree years from today if the interest rate is 2.8 percent?a.$32,799b.$34,074c.$28,134d.$11,046