All Else Being the Same, Which of the Following Statements

question 186

Multiple Choice

All else being the same, which of the following statements is correct?

• A) Present values increase as the discount rate increases I only.
• B) Present values decrease as the discount rate decreases.
• C) Present values increase the further away in time the future value.
• D) Present values are always smaller than future values when both r and t are positive.
• E) Present values are always smaller than future values when r is negative and t positive.

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Free Trade Agreement

An agreement between two or more countries to remove barriers to trade and facilitate the free flow of goods and services across their borders.

United States

A country located in North America, comprised of 50 states, known for its significant influence on global economics, politics, and culture.

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Collections of investments held by individuals or institutions which are composed of assets from various countries, diversifying risk and opportunity across international markets.

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An international financial marketplace where currencies are traded, determining the exchange rates for global trading and investment.