An Increase in the Prevailing Interest Rate

question 38

Multiple Choice

An increase in the prevailing interest rate

• A) increases the present value of future returns from investment, and increases investment.
• B) decreases the present value of future returns from investment, and decreases investment.
• C) decreases the present value of future returns from investment, and increases investment.
• D) increases the present value of future returns from investment, and decreases investment.

---

Definitions:

Human Relations

Interactions and relationships between people, especially in the workplace, emphasizing communication and cooperation.

Primary Labour Market

Refers to sectors of the economy offering high-quality, secure jobs with good pay, benefits, and opportunities for advancement.

Secondary Labour Market

A segment of the labor market characterized by low-paying, insecure jobs, and often with limited opportunities for advancement.

Informal Network

A social network formed based on personal relationships and social connections, rather than formal contracts or organizational structures.