The Concept of Present Value Helps Explain Why

question 168

Multiple Choice

The concept of present value helps explain why

• A)investment decreases when the interest rate increases,and it also helps explain why the quantity of loanable funds demanded decreases when the interest rate increases.
• B)investment decreases when the interest rate increases,but it is of no help in explaining why the quantity of loanable funds demanded decreases when the interest rate increases.
• C)the quantity of loanable funds demanded decreases when the interest rate increases,but it is of no help in explaining why investment decreases when the interest rate increases.
• D)None of the above are correct;the concept of present value is of no help in explaining why either investment or the quantity of loanable funds demanded decreases when the interest rate increases.

---

Definitions:

PTSD

Post-Traumatic Stress Disorder, a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Destruction

The act of causing so much damage to something that it no longer exists or cannot be repaired.

Home

A place of residence or refuge for individuals or families, often providing emotional, social, and physical comfort.

Intrude Into Consciousness

The process by which thoughts or feelings enter one's awareness without deliberate intention.