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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Effects of Inflation

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				Inflation occurs when the value of the currency has ___________ over time.


2				Another term for today's dollars is __________ dollars.


3				The market interest rate is a combination of the real interest rate and the ___________.


4				If future dollars are expressed in terms of today's dollars, the inflation-adjusted present worth is found by using the ______________ in the present worth factors.


5				In order to obtain the buying (purchasing) power of future dollars in terms of constant value dollars, the first step is to use the market interest rate to obtain F and then divide by _________________.


5				To determine the actual amount of money accumulated at a future time, use the ___________________.

Answer choices for questions 1 through 5

A)	Constant value
B)	Inflation rate
C)	Today's dollars
D)	i + f
E)	(1 + f)ⁿ
F)	Market interest rate
G)	Inflation-controlled rate
H)	MARR
I)	Decreased
J)	Increased
K)	i + f + if
L)	Real interest rate

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