QUESTION 7 The real interest rate is a function of the inflation rate. True False QUESTION 8 Switching from declining balance depreciation to straight-line depreciation is an inherent feature of the straight-line alternative (option) to the MACRS depreciation method. True False QUESTION 9 Cost or factor depletion is based on level, not time as used in depreciation. I. Book Value II. Usage III. Net Income IV. Production Life