For Positive Interest Rates, the Present Value Interest Factor Is

question 21

Multiple Choice

For positive interest rates, the present value interest factor is

• A) between 2.0 and 0.0.
• B) always negative.
• C) always less than 1.0.
• D) a discount rate.

---

Definitions:

Economic Tradition

The historical and cultural practices, beliefs, and philosophies that influence and shape an economy's structure, policy, and development.

Policy Rule

A guideline or protocol for economic policy that stipulates specific actions or responses to changes in economic indicators.

Monetarists' Prescription

Recommendations or policies suggested by monetarists, focusing on controlling the money supply to manage economic stability and inflation.

Monetary Rule

The money supply may grow at a specified annual percentage rate, generally about 3–4 percent.