1-Explain why a dollar has different values depending on the point in time received and how

"present valuing" or "future valuing" cash flow corrects for these differences.

2. Explain how movements in the stock markets can affect the economy and the business cycle. Also explain why in periods of uncertainty investors prefer to buy bonds and avoid the equity market.

Answer rating: 100% (QA)

Answer 1 The value of a dollar varies over time due to several economic factors Inflation erodes the purchasing power of money over time meaning that ... View the full answer