The present value formula makes it apparent that:
A) a decline in the interest rate will cause a decision maker to weigh recent period returns relatively more heavily than before the decline.
B) an increase in the interest rate will cause a decision maker to weigh distant (or future) returns relatively more heavily than before the increase.
C) the present value of a fixed sum decreases as the time until it is to be paid increases.
D) all of the above
E) both A and C.
C
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If productivity growth equals 3.0 percent, the contribution from capital growth 1.2 percent and the contribution from labor growth 2.0 percent, then output growth must equal ________
A) 2.2 percent B) 4.2 percent C) 6.2 percent D) 7.2 percent
The European Economic Community was created in 1957 by:
a. France, the United Kingdom, Italy, Belgium, the Netherlands, and Luxembourg. b. France, West Germany, Italy, Belgium, the Netherlands, and Luxemburg. c. France, West Germany, Italy, Belgium, the Netherlands, and the United Kingdom. d. France, West Germany, Italy, the United Kingdom, Belgium, the Netherlands, and Luxembourg. e. France, West Germany, Italy, Belgium, the United Kingdom, and Luxembourg.