The Greater the Interest Rate, The_______ _ the Present Value

question 60

Multiple Choice

The greater the interest rate, the_______ _ the present value and the _________ the discount factor.

• A)larger; larger
• B)larger; smaller
• C)smaller; larger
• D)smaller; smaller

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Definitions:

Interest Groups

Organizations that attempt to influence public policy and government decisions to benefit their members or causes they support.

Tyranny of the Majority

A situation in a democratic setting where decisions made by a majority place its interests above those of an individual or minority group, potentially leading to oppression.

PACs

Short for Political Action Committees, these are organizations that raise money privately to influence elections or legislation, especially at the federal level.

United States

A federal republic in North America, composed of 50 states, a federal district, and other territories.