ECO 561 Week 5 Quiz The Classical Theory of Asset Prices assumes which of the following ideas?: The value of an asset is the discounted present value of expected cash flows, expected income is the be

ECO 561 Week 5 Quiz The Classical Theory of Asset Prices assumes which of the following ideas?: The value of an asset is the discounted present value of expected cash flows, expected income is the be

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The Classical Theory of Asset Prices assumes which of the following ideas?: The value of an asset is the discounted present value of expected cash flows, expected income is the best information available, and the interest rate is the safe interest rate plus a risk premium

Economists use two principle interest rates: nominal and real. The purpose of this distinction is to: . account for and factor the influences that inflation may have on the behavior that consumers and firms use to determine how much to save out of their incomes