The Present Value of a Future Amount of Money Will

question 47

Multiple Choice

The present value of a future amount of money will be greater the

• A)greater the interest rate.
• B)less the amount of time before the future payment is received.
• C)more the amount of time before the future payment is received.
• D)greater the expected rate of inflation.

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Definitions:

Extinction

In behavioral psychology, the gradual decrease and eventual elimination of a conditioned response when it is no longer reinforced.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, comes to elicit a conditioned response.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without previous conditioning or learning.