As the interest rate increases, the present value of a payment received in the future:
A. increases.
B. remains constant.
C. may or may not change depending on other factors.
D. decreases.
Answer: D
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From 1948 to 2010, the United States has experienced only 4 recessions
Indicate whether the statement is true or false
The aggregate demand for good X is Q = 20 - P. If the price rises from P = $4 to P = $5, what is the change in consumer surplus?
A) $4.50 B) $5.50 C) $15.50 D) $16
Inventory levels unexpectedly fall and as a result firms increase the quantity of goods and services they produce. Which of the following is consistent with these two occurrences?
A) TP is greater than TE. B) TP is less than TE. C) TE is equal to TP minus the rise in inventories above the optimum inventory level. D) TP is equal to TE. E) b and c
The rate of inflation, excluding the effects of food and energy prices, is _____.
(A) Hyperinflation (B) The core inflation rate (C) The price index (D) The wage-price spiral