When Interest Rates Rise, How Does This Affect the Present

question 85

Multiple Choice

When interest rates rise, how does this affect the present value of human capital investment?

• A) It makes human capital investment less worthwhile.
• B) It makes human capital investment more worthwhile.
• C) It raises the present value.
• D) It has no effect on present value and human capital investment.

---

Definitions:

Tax Haven

A country or jurisdiction with very low or no taxes, often used by businesses and wealthy individuals to reduce their tax liability.

International Accounting Standards Board

An independent organization that establishes accounting standards, aiming for global harmonization.

Generally Accepted Accounting Principles

A set of accounting standards and procedures used in the United States to compile financial statements, ensuring consistency and comparability across industries.

Payment Method

The means by which a payment is made and received, including cash, credit cards, bank transfers, and digital payment platforms.