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    Business
  3. Study Set
    Microeconomic Theory Basic
  4. Exam
    Exam 15: Capital and Time
  5. Question
    If the Interest Rate Rises,the Present Discounted Value of a Stream
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If the Interest Rate Rises,the Present Discounted Value of a Stream

Question 8

Question 8

Multiple Choice

If the interest rate rises,the present discounted value of a stream of payments owed in the future:


A) rises.
B) stays constant.
C) falls.
D) may rise or fall depending on the shape of the stream.

Correct Answer:

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