An increase in the prevailing interest rate?

3459EconomicsMedium

Adecreases the present value of future return from investment and decreases investment

Bdecreases the present value of future returns from investment and increase investment

Cincreases the present value of future returns from investment and increases investment

Dincreases the present value of future returns from investment and decreases investment

Correct answer

A. decreases the present value of future return from investment and decreases investment

Explanation

The correct answer is decreases the present value of future return from investment and decreases investment.

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