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As the Interest Rate Increases, What Happens to the Present

question 88

Essay

As the interest rate increases, what happens to the present value of a future payment? Explain why changes in the interest rate will lead to changes in the quantity of loanable funds demanded and investment spending.


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A form of verbal abuse involving derogatory language intended to demean or insult someone.

Referent Power

A form of influence based on the ability to attract others and build loyalty through charisma or personal traits.

Coercive Power

Power based on the use of sanctions or punishments to influence others.

Legitimate Power

Power that is based on respect for a person’s position.

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