The Present Value of a Future Amount Will Decrease If

question 56

Multiple Choice

The present value of a future amount will decrease if _________________.
I.the discount rate increases
II.the amount occurs closer in time
III.the compounding frequency increases
IV.inflation increases

• A)I and II only
• B)I and III only
• C)II and III only
• D)III and IV only
• E)I, III and IV only

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Definitions:

Operant Conditioning

A learning framework through which a behavior's strength is altered by either reinforcement techniques or punitive actions.

Vending Machines

Automated machines that provide items such as snacks, beverages, and other products to consumers after money, a credit card, or a specially designed card is inserted into the machine.

Shaping

A method of conditioning that involves reinforcing successive approximations of a desired behavior to teach a new behavior or skill.

Desired Behavior

A specific action or pattern of actions that an individual or system aims to elicit or establish as routine.