Which of the Following Statements Is True

question 175

Multiple Choice

Which of the following statements is true?

• A)As interest rates increase, present values increase.
• B)Pure economic rent is a payment to a monopolist for the monopolist's product.
• C)Ricardo argued that land rent is price determined, not price determining.
• D)The present value of $10,000 in one year, at a 6 percent interest rate, is $9,200.

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Definitions:

Contra Account

An account used in the general ledger to reduce the value of a related account when the two are netted together.