if an economists job paid $50,000 a year 10 years ago, how would understanding the present value and future…

if an economists job paid $50,000 a year 10 years ago, how would understanding the present value and future value of money help explain the difference in the pay rate for the same job today?\no it would predict the future pay rate in 10 more years.\no it would guarantee a fixed pay rate increase each year.\no it would justify why the pay rate has more than doubled.\no it would calculate the pay rate adjusted for economic changes.

if an economists job paid $50,000 a year 10 years ago, how would understanding the present value and future value of money help explain the difference in the pay rate for the same job today?\no it would predict the future pay rate in 10 more years.\no it would guarantee a fixed pay rate increase each year.\no it would justify why the pay rate has more than doubled.\no it would calculate the pay rate adjusted for economic changes.

Answer

Brief Explanations:

Understanding present and future value of money accounts for factors like inflation, interest - rates etc. These economic changes impact pay rates over time. Present and future value calculations adjust for such economic factors to show what the pay rate should be now.

Answer:

It would calculate the pay rate adjusted for economic changes.