The Present Value of $10,000 to Be Received in Five

question 11

Multiple Choice

The present value of $10,000 to be received in five years will be smaller if the discount rate is

• A)increased.
• B)decreased.
• C)not changed.
• D)equal to the stated rate of interest.

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Definitions:

Personality Dispositions

Enduring personal qualities or tendencies that influence behavior and attitudes across various situations.

Attentional Bias

Attentional bias is a tendency to pay more attention to certain types of information while ignoring others, often influenced by emotional states or individual priorities.

External-Stable Attribution

The process of attributing an event or outcome to factors outside the individual that are consistent and unchanging over time.

Internal-Unstable Attribution

An explanation for behavior emphasizing internal but changeable factors, such as mood or effort.