The Future Value of a Dollar ________ as the Interest

question 148

Multiple Choice

The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received.

• A)decreases;decreases.
• B)decreases;increases.
• C)increases;increases.
• D)increases;decreases.

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Definitions:

Marginal Cost

The increase in cost incurred by producing one additional unit of a product or service.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive, representing a measure of producer welfare.

Average Cost

The total cost divided by the quantity produced, indicating the cost per unit of output.

Competitive Industry

An industry characterized by a large number of firms competing against each other, leading to innovation, varied product choices, and reasonable prices for consumers.