The Higher the Rate of Interest

question 192

Multiple Choice

The higher the rate of interest:

• A)the larger the present value of a future sum of money.
• B)the smaller the future value of an amount invested today.
• C)the smaller the present value of a future sum of money.
• D)All of the above

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Definitions:

Macroeconomist

An economist who specializes in macroeconomics, studying aggregated indicators and the behavior of the economy as a whole, including inflation, unemployment, and economic growth.

Normative Statement

A statement that reflects an opinion, value judgment, or what ought to be, rather than what is empirically verifiable.

Positive Statement

An objective statement based on facts that can be tested and validated, used in contrast to normative statements which express opinions or what ought to be.

Normative Statements

Statements that express opinions, desires, or judgments about what should be, and do not make factual or objective claims.