For every dollar's worth of goods and services bought at an earlier date, the amount of money it would take now to buy the same amount of goods and services after N years of inflation at rate p is called the inflation______ discount factor.

Question

Quizplus · Accepted Answer

The discount factor is based on the past inflation rate. It measures the decreased value of money over time and is used to compare the purchasing power of money over different time periods. Therefore, the answer is past.

For Every Dollar's Worth of Goods and Services Bought at an Earlier