Money Received Today Is Worth More Than the Same Amount

question 93

Multiple Choice

Money received today is worth more than the same amount of money received in the future. This is true because

• A) money received today can grow at a compounded rate.
• B) inflation will devalue future dollars.
• C) generally, goods and services will cost more in the future.
• D) All of these.

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Definitions:

GDP

Gross Domestic Product is the aggregate market value of all ultimate goods and services made within a nation over a specified period.

Total Income

The aggregate income earned by all individuals or entities in an economy, including wages, profits, and rent.

Total Expenditure

The sum of all outlays or spending by an individual, household, or an economic entity within a certain period of time.

Market Prices

The current price at which an asset or service can be bought or sold in the market.