Which of These Statements Is True of Discounting

question 158

Multiple Choice

Which of these statements is true of discounting?

• A) It is the reverse of compounding.
• B) It significantly decreases the value of a future amount to the present.
• C) It is the process of figuring out how much an amount that you expect to receive in the future is worth today.
• D) All of the above.

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Definitions:

Disproportionately Severe

Punishments or actions that are excessively harsh or severe in relation to the nature of the offense or situation.

Morality Policy

Refers to government actions designed to address issues considered to fundamentally pertain to moral values, such as abortion, drug use, and same-sex marriage.

Moral Panic

A widespread feeling of fear and concern among the public, often out of proportion to the actual threat, usually about moral issues or societal values.

Death Sentence

A judicial decree that a person be punished by execution as retribution for committing a crime deemed worthy of capital punishment.