Given the future value, which of the following will contribute to a lower present value?Question 8Select one:a.Higher discount rateb.Fewer time periodsc.Less frequent discountingd.Lower discount factore.None of these is correc

The future value of one dollar today in five years ______ as the interest rate increases.DecreasesIncreasesdoes not changecannot be determinedNone of these are correct

When computing the present discounted value (pdv) of a future stream of labor income, an increase in the interest rate willGroup of answer choicesreduce the pdv.have no impact on pdv.depend on the time path of income.increase the pdv.

If we use future value of cash flows rather than present value to decide whether to make an investment: a. we will make the same decision using either future value or present value. b. We will make a good decision, since the future value will always be higher if the discount rate is positive. c. we will make a bad decision, since the future value will always be lower if the discount rate is positive. d. we will make a bad decision, since the future value will always be higher if the discount rate is positive. e. There is not enough information given to answer the question.

Which of the following is not a result of raising the discount rate?Select the correct answer below:Borrowing money from the Fed decreases.Market interest rates rise.The money supply falls.Banks extend more loans to individuals and firms.

Ceterus Paribus, if we reduce the rate of discounting, the present value will:2 pointsFallRiseRemain sameNeed more information