You Are Expecting to Receive $750 at Some Time in the Future.Which

question 72

Multiple Choice

You are expecting to receive $750 at some time in the future.Which of the following would unambiguously decrease the present value of this future payment?

• A)Interest rates rise and you get the payment sooner.
• B)Interest rates rise and you have to wait longer for the payment.
• C)Interest rates fall and you get the payment sooner.
• D)Interest rates fall and you have to wait longer to get the payment.

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Definitions:

Habituation

The process by which there is a decrease in response to a stimulus after being repeatedly exposed to it, leading to an adaptation or normalization of response.

Continuous Cycles

A concept in various fields indicating ongoing, repeating phases or processes without a definite endpoint.

Sensorimotor Substage 6

The final phase of Piaget's sensorimotor stage, occurring around 18-24 months of age, where toddlers develop mental representations of objects and are capable of deferred imitation and more sophisticated problem-solving.

Symbols

Objects, characters, figures, or colors used to represent abstract concepts or ideas.