You Are Scheduled to Receive $10,000 in One Year

question 28

Multiple Choice

You are scheduled to receive $10,000 in one year.An increase in the interest rate will have what effect on the future value of this cash flow?

• A)It will cause the future value to fall.
• B)It will cause the future value to rise.
• C)It will have no effect on the future value.
• D)The effect cannot be determined with the information provided.

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Definitions:

Labor Force

The labor force comprises all the working-age people in an economy who are either employed or actively looking for work.

Monopsony

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms of sale.

Collective Bargaining

The process by which employers and a group of employees negotiate wages, working conditions, and other employment terms.

Strikes

A work stoppage caused by the mass refusal of employees to work, usually in protest against work conditions, pay levels, or company policies.