As Long as the Discount Rate Is_______ the Interest Rate

question 71

Multiple Choice

As long as the discount rate is_______ the interest rate on a loan, the present value of the cost of an investment equals the initial cost of the investment.

• A)greater than
• B)less than
• C)exactly double
• D)equal to

---

Definitions:

Equilibrium

A state of balance or stability, often referring to psychological or emotional balance.

Conscious

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Unconscious

Pertains to the aspects of the mental processes that occur without conscious perception or awareness.

Attraction

The force or influence that draws people together, often leading to friendships, romantic relationships, or other social bonds.