Question: How does a changing interest rate affect the value of money over time? In the Ginny's restaurant case, how do we leverage potential future

  • How does a changing interest rate affect the value of money over time?
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  • In the Ginny's restaurant case, how do we leverage potential future cash flows to attain funds today?
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  • How would our decisions change in the Ginny's restaurant case based on our expectation of future interest rates? What would we do if we expect the Fed to continue to increase rates over the next year - does it change our decisions?



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1 Impact of Changing Interest Rates on the Value of Money Over Time Changing interest rates have a significant impact on the value of money over time When interest rates increase the value of money de... View full answer

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