If the present value of a perpetual income stream is increasing,the discount rate must be:
A) Increasing
B) Decreasing
C) Changing unpredictably
D) Keeping pace with inflation

Name: If the present value of a perpetual income stream is increasing,the discount rate must be: A) Increasing B) Decreasing C) Changing unpredictably D) Keeping pace with inflation
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Question

Quizplus · Accepted Answer

If the present value of a perpetuity is increasing, the discount rate must be decreasing.

If the Present Value of a Perpetual Income Stream Is