Which of the following statement is true? The present value of a given payment is lower the further away in the future the payment is made. The time value of money principle says that a dollar tomorrow is worth more than a dollar today. The price of government bond increases as interest rate rises. A project with positive net present value is typically not worth investing.

Which of the following statement is true? The present value of a given payment is lower the further away in the future the payment is made. The time value of money principle says that a dollar tomorrow is worth more than a dollar today. The price of government bond increases as interest rate rises. A project with positive net present value is typically not worth investing.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter9: The Financial Markets And The Economy: The Tail That Wags The Dog

Section: Chapter Questions

Problem 2DQ

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