Question

Which of the following statements is/are FALSE, all else the same?

(I) Present values increase as the discount rate increases.
(II) Present values increase the further away in time the future value.
(III) Present values are smaller than future values when both r and t are positive.

Answer 1

I. Present values increase as the discount rate increases.

and

III. Present values are smaller than future values when both r and t are positive.