The Net Present Value of $100, Delivered One Year from Now

question 27

Multiple Choice

The net present value of $100, delivered one year from now, would

• A) fall if the rate of interest increased.
• B) fall if the rate of interest decreased.
• C) rise if the rate of interest increased.
• D) not change if the interest rate changed.

---

Definitions:

Resistance To Extinction

The persistence of learned behavior or response patterns even after the removal of the reinforcing stimulus.

Continuous Reinforcement

A learning process where a behavior is reinforced each time it occurs, leading to faster learning but quicker extinction once reinforcement stops.

Partial Reinforcement

A conditioning strategy where only a subset of responses is rewarded, leading to more resilient behavior than continuous reinforcement.

Partial Reinforcement

A conditioning principle where only some of the responses made are followed by reinforcement, leading to more resistant behavior to extinction.