The present value of an expected future payment ________ as the interest rate increases
A) falls
B) rises
C) is constant
D) is unaffected
A
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The assessed value of a home is
A. the value that the jurisdiction uses to assign taxes. B. an annual 6% increase in the value of a home. C. the annual rate of deprecation of a home because of use. D. always lower than its market value.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). b. The quantity of real loanable funds per time period falls, and current international transactions become more negative (or less positive). c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period and current international transactions remain the same. e. The quantity of real loanable funds per time period rises, and current international transactions become more positive (or less negative).
Conservative economists would like to help younger workers get work experience by
A. setting up a government jobs program. B. raising the minimum wage rate. C. lowering the minimum wage rate. D. passing a law requiring employers to hire teenagers ahead of older workers who are equally qualified.
What is the name for government actions that establish maximum or minimum payments for goods or services?
a. interest rates b. price controls c. income taxes d. budget policies