The Shorter the Length of Time Between a Present Value

question 49

Multiple Choice

The shorter the length of time between a present value and its corresponding future value:

• A) the lower the present value,relative to the future value.
• B) the higher the present value,relative to the future value.
• C) the higher the interest rate used in the present-valuation.
• D) the lower the discount rate used.

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Definitions:

Just Noticeable Difference

The smallest change in stimulation that a person can reliably detect.

Weber's Law

A principle stating that the smallest noticeable difference in stimulus intensity is a constant proportion of the intensity of the initial stimulus.

Transduction

The process through which sensory receptors convert the sensory stimulation into neural impulses.

Sensory Stimulation

The process of using sensory input to engage and stimulate the brain, improving cognitive functions and emotional well-being.