Answer : The future value gets smaller as you increase the interest rate
future value gets multiplied by ( 1 + interest rate).
so, as the interest increase future value gets increased
What happens to a future value as you increase the interest rate? The future value remains...
Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.
As the quantity sold rises for a seller in imperfect competition, what happens to the difference between price and marginal revenue? 1It remains constant and is smaller than price. 2It gets larger and larger. 3It gets smaller and smaller. 4It remains constant and is equal in size to price.
Respond to the following in a minimum of 175 words: Explain what happens to the interest rate if the money supply increases or decreases and the money demand remains unchanged. Explain what happens to the interest rate if the money demand increases or decreases and the money supply remains unchanged.
Assuming the energy diagram below is for an atom, what happens to the size of the atom when it undergoes transition a? that atom gets smaller because the electron is occupying a smaller volume that atom gets smaller because the electron is occupying a larger volume that atom gets larger because the electron is occupying a larger volume the atom gets larger because the electron is occupying a smaller volume the size of the atom does not change
As the discount rate approaches zero, the present value of future, cash inflows Select one: @ a. gets closer to the sum of the cash inflows b. gets larger without limit, i.e., approaches infinity © C. slowly approaches zero d. stays unchanged Next page
(2a) How would an increase in the interest rate (i) affect the future value of a sum of money? (2b) How would an increase in the interest rate (i) affect the present value of a sum of money? Explain why this would happen.
1) Explain: Who has control of the money supply in the US Economy? What happens to the interest rate if the money supply increases or decreases and the demand for money remains unchanged? 2) What are the "Tools" of the Federal Reserve? How are they used to increase the money Supply? How are they used to decrease the money supply? When would you use these policies? No less than 150 words each
A) What is the future value of this cash flow at 5% interest rate at the end of year 7? B) What is the future value of this cash flow at 9% interest rate at the end of year 7? C) What is the future value of this cash flow at 14% interest rate at the end of year 7?
The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an arrow along one of the curves that illustrate a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow along one of the curves that illustrate a rise in the price level accompanied by the same percentage rise in the money wage rate. Label it 2.An increase in the price level when the money wage rate remains...
If the Fed holds the interest rate constant in response to an increase in government purchases, the money supply will , and the impact on income will be than if the money supply were held constant. a. increase, larger b. increase, smaller c. decrease, larger d. decrease, smaller