Assuming a Positive Interest Rate, the Dollar Amount of a Future

question 354

Multiple Choice

Assuming a positive interest rate, the dollar amount of a future payment is:

• A) exactly the same as its present value.
• B) approximately the same as its present value.
• C) less than its present value.
• D) more than its present value.

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Definitions:

Kohlberg

Refers to Lawrence Kohlberg, a psychologist known for his theory of moral development which proposes that moral reasoning progresses through distinct stages.

Autonomous Morality

A stage of moral development where individuals start to understand that moral principles may vary based on context and are not just based on external authority figures or rules.

Moral Development

refers to the process through which individuals develop an understanding of values, ethics, and morality, progressing through various stages of moral reasoning throughout their life.

Immanent Justice

Immanent Justice is a cognitive bias, particularly in children, where it is believed that moral behavior is always rewarded and immoral behavior is always punished, naturally or supernaturally.