Q
An increase in the prevailing interest rate ?
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A
A. Increases the present value of future returns from investment and increases investment
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B
B. Decreases the present value of future return from investment and decreases investment
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C
C. Decreases the present value of future returns from investment and increase investment
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D
D. Increases the present value of future returns from investment and decreases investment
Correct Answer:
B. B. Decreases the present value of future return from investment and decreases investment