As the interest rate increases,
A. the future return to an investment decreases.
B. the present value of future benefits decreases.
C. the present value of future benefits increases.
D. the present value of a future investment increases.
E. the discount rate decreases.
Answer: B
You might also like to view...
In U.S. presidential elections, the winner of the popular vote
A) was always the election winner. B) lost the election only one time in history. C) lost the election about 10 percent of the time. D) lost the election more times than he won the election.
Which of the following is true about a liquidity trap situation:
a. Quantitative easing might be a more effective strategy to stimulate the economy than buying short term government securities. b. Quantitative easing may be able to affect long term interest rates even when the Fed is unable to appreciably lower short term interest rates. c. The Fed cannot easily reduce the fed funds interest rate. d. All of the above are true.
Which of the following is the first step in empirical economic analysis?
A. Collection of data B. Statement of hypotheses C. Specification of an econometric model D. Testing of hypotheses
YearCPI200594200699200710020081042009117Using the information in the table shown, what can be said about the rate of inflation?
A. Deflation occurred until 2009, then inflation occurred. B. Inflation was the largest from 2005 to 2006. C. Deflation occurred before 2007, then inflation occurred. D. Inflation occurred every year from 2005 to 2009.