If interest rates are high,
A)money significantly in the future is worth very little today.
B)money significantly in the future is worth a lot today.
C)stock investors will not invest.
D)firms will have low profits.

Question

Quizplus · Accepted Answer

When interest rates are high, the present value of money to be received in the future is lower because the opportunity cost of not having that money to invest at the high rates currently available is greater.

If Interest Rates Are High