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Chapter Review: True or False Quiz
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This online quiz contains 5 questions. Click on the button next to the selection that best answers the question. To review your results, click on the Submit Answers button displayed after the last question. Good luck!

1
Inflated dollars can be converted to constant-value dollars by dividing by one plus the inflation rate for each year.
A)TRUE
B)FALSE
2
Constant-value dollars means the same thing as today's dollars.
A)TRUE
B)FALSE
3
The real interest rate is also known as the inflation-free interest rate.
A)TRUE
B)FALSE
4
The real interest rate is a function of the inflation rate.
A)TRUE
B)FALSE
5
The present worth of an alternative can be determined by dividing then-current dollars by the inflation rate and then using the inflated interest rate in the present worth formulas.
A)TRUE
B)FALSE







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