As Interest Rates Fall, a Firm Would

question 165

Multiple Choice

As interest rates fall, a firm would

• A) have higher expected costs of investment.
• B) have decreasing present value of expected earning.
• C) be willing to pay less now to purchase the same number of future dollars.
• D) be willing to pay more now to purchase the same number of future dollars.

---

Definitions:

Concurrent Condition

A situation in contract law where the obligations of parties are to be performed at the same time; the performance of one party is conditioned upon the performance by the other.

Constructive Condition

A condition inferred by law from the conduct of parties or the circumstances, rather than explicitly stated in a contract.

Materiality

A principle in accounting and law that concerns the significance of an event, fact, or item in the context of decision-making or reporting.

Forfeiture

The loss or giving up of something as a penalty for wrongdoing or breach of contract.