The Net Present Value of $1,000 Received One Year from Now

question 90

Multiple Choice

The net present value of $1,000 received one year from now will

• A) increase with the interest rate.
• B) exceed $1,000 as long as the interest rate is positive.
• C) exceed the net present value of $1,000 to be received two years from now.
• D) equal $1,100 if the current interest (discount) rate is 10 percent.

---

Definitions:

Economic Wants

Desires for goods and services that can be satisfied through market transactions or consumption, including basic needs and luxuries.

Unlimited Resources

A hypothetical situation where resources available for use are infinite, eliminating constraints on usage or production.

Recurring Theme

A motif or subject that appears repeatedly throughout a work of literature, music, or art, emphasizing a particular idea or message.

Positive Statement

An objective statement based on facts and evidence that can be tested and verified, focusing on describing "what is".