When considering the present value of any financial asset that makes a stream of payments in the future, we know that if the market interest rate falls,     the present value of the asset will rise.     the current value of the asset will fall.     the present value of the asset will fall.     the present value of the asset is unaffected.     the future value of the asset will rise.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter16: Interest, Rent, And Profit
Section: Chapter Questions
Problem 1WNG
icon
Related questions
Question
61. When considering the present value of any financial asset that makes a stream of payments in the future, we know that if the market interest rate falls,
   
the present value of the asset will rise.
   
the current value of the asset will fall.
   
the present value of the asset will fall.
   
the present value of the asset is unaffected.
   
the future value of the asset will rise.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Assets
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
MACROECONOMICS
MACROECONOMICS
Economics
ISBN:
9781337794985
Author:
Baumol
Publisher:
CENGAGE L
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax