Suppose that the rate of interest increases. What will happen to the discounted present value of an investment?

a. It will increase.
b. It will decrease.
c. It will remain unchanged.
d. It depends on the magnitude of the change.


b

Economics

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Which of the following factors are repeated in many different definitions of globalization?

A) creation of a smaller world B) movement toward a world economy C) people living across the world from one another having a greater impact upon each other D) all of the above

Economics

A consumer goes to purchase a TV advertised for $300. As he is checking out, the clerk informs him of a $20 rebate offer for the TV, which he fills out and receives in 3 months. What can one can infer about the consumer's reservation price?

A. It was exactly $300. B. It was at least $300. C. It was at most $280. D. It was at least $280 but less than $300.

Economics

Refer to Figure 18-1. Area F + G represents

A) the portion of sales tax revenue borne by consumers.
B) the portion of sales tax revenue borne by producers.
C) the excess burden of the sales tax.
D) sales tax revenue collected by the government.

Economics

Refer to the below graphs. A short-run equilibrium that would produce profits for a monopolistically competitive firm would be represented by graph:



A. A
B. B
C. C
D. D

Economics