When dealing with present value, a higher interest rate:
A. does not affect the present value of the future amount.
B. decreases the present value of a future amount.
C. increases the present value of a future amount.
D. None of the statements associated with this question are correct.
Answer: B
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A rise in the price level has a direct effect on spending because
A) the real value of the money people have decreases and they can buy less with it. B) a higher price gives people more money, and so the more goods and services they can buy. C) the real value of the money people have varies directly with the price level. D) people like to spend more when prices are higher.
The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City?
A) $1500 B) $1350 C) $1250 D) $1125
A company will shut down in the short run if it cannot cover its __________ and will exit the industry in the long run if it cannot cover its __________
Fill in the blank(s) with correct word
Why is macroeconomic forecasting so difficult? Does this difficulty mean economics is a worthless field of study?
What will be an ideal response?