Given Some Amount to Be Received Several Years in the Future,if

question 123

Multiple Choice

Given some amount to be received several years in the future,if the interest rate increases,the present value of the future amount will

• A) Be higher.
• B) Be lower.
• C) Stay the same.
• D) Cannot tell.
• E) Be variable.

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Definitions:

Average Revenue

The amount of income generated per unit of sale or average price at which a product is sold.

Demand Curve

An illustrated chart depicting the correlation between a good or service's price and the amount consumers want to buy during a certain period.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.

Average Revenue

The average amount of money received by a firm per unit of output sold, calculated by dividing the total revenue by the number of units sold.