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?\nit would predict the future pay rate in 10 more years.\nit would guarantee a fixed pay rate increase each year.\nit would justify why the pay rate has more than doubled.\nit 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?\nit would predict the future pay rate in 10 more years.\nit would guarantee a fixed pay rate increase each year.\nit would justify why the pay rate has more than doubled.\nit would calculate the pay rate adjusted for economic changes.

Answer

Brief Explanations:

Understanding present and future value of money helps adjust for economic factors like inflation, interest - rates etc. This allows for calculating the current pay rate based on the past pay rate adjusted for economic changes.

Answer:

It would calculate the pay rate adjusted for economic changes.