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

question 83

Multiple Choice

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

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

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Definitions:

Skilled Labor

Workers who have specialized training, education, or experience that is valuable for specific jobs, industries, or tasks.

Unskilled Labor

Workforce sector comprising individuals without specialized training or qualifications, often employed in tasks that require manual efforts.

Marginal Productivity

The additional output that is produced by employing one more unit of a factor of production, holding all other factors constant.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production.