Which of the Following Changes Would Decrease the Present Value

question 16

Multiple Choice

Which of the following changes would decrease the present value of a future payment?

• A)a decrease in the size of the payment
• B)an increase in the time until the payment is made
• C)an increase in the interest rate
• D)All of the above are correct.

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Definitions:

Working Poor

Individuals who have employment but whose earnings are not sufficient to meet the poverty line or standard living costs.

Libertarians

Libertarians advocate for minimal government intervention in personal and economic affairs, emphasizing individual liberty and voluntary association.

Equal Opportunities

The principle that all individuals should have the same opportunities to advance socially and economically, without facing discrimination or bias.

Negative Income Tax

A taxation framework where individuals earning under a specified threshold get additional compensation from the government rather than contributing tax.