An increase in the interest rate causes a decrease in the future value of $1,000 that you have in a bank account today.

Name: An increase in the interest rate causes a decrease in the future value of $1,000 that you have in a bank account today.
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Question

Quizplus · Accepted Answer

An increase in the interest rate increases the future value of money saved in a bank account because the amount of interest earned on the saved money will be higher.

An Increase in the Interest Rate Causes a Decrease in the Future