Other Factors Constant, the Present Value Will Be Larger

question 284

Multiple Choice

Other factors constant, the present value will be larger,

• A) the smaller is the future value.
• B) the higher is the interest rate.
• C) the larger is the number of periods t.
• D) the shorter is the time period t.

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Definitions:

Competitive Firm

A company operating in a market where it must compete against others for the same customers or resources, characterized by its efforts to offer better products, prices, or services.

Inelastic Demand

Characterized by a consumer's lack of sensitivity to price changes, resulting in minimal changes in quantity demanded despite fluctuations in price.

Competitive Industry

An industry characterized by numerous firms, where no single firm can dictate the price of goods or services.

Marginal Cost

The cost related to creating an additional unit of a product or service.