Which of the Following Statements Is Correct

question 38

Multiple Choice

Which of the following statements is correct?

• A) Interest would not exist in a nonmonetary economy.
• B) The present value of a future dollar payment is directly related to the interest rate.
• C) The present value of a fixed dollar payment to be received in the future will decline as the length of the time before the payment will be received increases.
• D) During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.

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Definitions:

Significant

Referring to statistical results, it denotes findings that are unlikely to have occurred by chance, indicating a meaningful difference or correlation.

Main Effects

The direct impact of an independent variable on a dependent variable in an experimental design.

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables on a dependent variable, allowing interaction effects to be assessed.

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effects on dependent variables.