The Economic Lens and the Time Value of Money

Microeconomics, the view from the individual decision

Macroeconomics, the view from the whole economy

The macro variables in financial decisions

The time value of money preview

Which question belongs to microeconomics rather than macroeconomics?

Which list names the macroeconomic variables this lesson highlights as most important to financial markets?

A firm cuts costs and improves quality yet its earnings fall in a recession. What does this outcome illustrate about the two economic lenses?

According to the lesson, what are the two reasons a dollar today is worth more than a dollar tomorrow?

Which list of decision makers is all solving the same underlying time value of money problem?

Why does a bond investor check inflation expectations before buying a bond with fixed coupon payments?

What branch of economics studies economy-wide aggregates such as output, employment, and the overall price level? Answer with one word in lowercase.

What four-word phrase names the principle that money today is worth more than the identical amount in the future? Write the phrase in lowercase.

What three-letter abbreviation names the value of all goods and services produced by an economy, a key macro variable in financial forecasting? Write the abbreviation.

Which rate, set in the economy's interest rate structure, anchors the discount rate used to convert future money to present value? Answer with two words.