The Net Present Value of $100 to Be Received One

question 28

Multiple Choice

The net present value of $100 to be received one year from now will

• A) increase if the interest rate rises.
• B) increase if the payment is delayed until two years from now.
• C) be greater than the net present value of $95 to be received one year from now.
• D) be greater than the value of having $95 now if the interest rate is 10 percent.

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Definitions:

Freud

Sigmund Freud, an Austrian neurologist who founded psychoanalytic theory, emphasizing unconscious processes and childhood experiences.

Behaviorist Theories

A group of psychological theories suggesting that all behaviors are acquired through conditioning, emphasizing the role of the external environment.

Social Learning Theory

A theory that posits individuals learn behaviors, norms, and values by observing and imitating the actions of others.

Bobo Doll

A term referencing an experiment in social psychology that demonstrated how children imitate behaviors observed in adults, particularly acts of aggression.