Which of the Following Will Not Cause a Decrease in the Present

question 1

Multiple Choice

Which of the following will not cause a decrease in the present value of a sequence of payments?

• A) An increase in a future expected payment.
• B) A decrease in a future expected payment.
• C) An increase in the current interest rate.
• D) A decrease in the current payment.
• E) An increase in expected future interest rates.

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Definitions:

Research

A methodical examination and analysis of documents and resources to discover truths and form original conclusions.

Reinforcement

A stimulus or event that follows a behavior and increases the likelihood of that behavior occurring again in the future.

Punishment

A consequence imposed following undesirable behavior, intended to decrease the likelihood of that behavior recurring.

Stimuli

External or internal events that elicit a physiological or psychological response.