The Present Value of a Future Sum Decreases as Either

question 82

True/False

The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

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Definitions:

External Cause

A factor or event that originates outside of an individual and has an impact on personal outcomes or behaviors.

Fundamental Attribution Error

A cognitive bias where individuals attribute others' actions to their character or personality, rather than external factors.

Self-Effacing Error

The tendency to attribute one’s successes to external factors while blaming oneself for failures, commonly observed in certain cultures.

Signal Detection Error

occurs when an observer incorrectly perceives or fails to perceive a stimulus, leading to false positives or negatives in the detection task.