Which Two Elements of the Expectancy Theory Are Measured in a Range

question 46

Multiple Choice

Which two elements of the expectancy theory are measured in a range from −1 to +1?

• A) effort and valence
• B) instrumentality and expectancy
• C) instrumentality and valence
• D) valence and expectancy

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.

Purchasing Power

The amount of goods or services that one unit of money can buy, reflecting the economic value of currency.

Interest Rate

The fee that a borrower must pay to a lender for borrowing assets, typically represented as a percentage of the principal amount.

Time-Value

The principle stating that money in hand today is more valuable than the identical amount received later, owing to its capacity to generate earnings.