As the interest rate rises, the present value of a given perpetual stream of income
A) increases.
B) decreases.
C) does not change.
D) approaches infinity.
B
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During recessions, unemployment insurance payments tend to rise
a. True b. False Indicate whether the statement is true or false
If the demand for agricultural products is price inelastic and the supply is dependent upon weather conditions, then
A) price changes are likely to be small, and farm revenues are likely to be highly volatile. B) price changes are likely to be large, and farm revenues are likely to be highly volatile. C) prices are likely to be constant, and farm revenues are likely to be constant. D) prices are likely to be constant, and farm revenues are likely to be highly volatile. E) price changes are likely to be small, and farm revenues are likely to be constant.