You Are Offered a Choice Between $770 Today and $815

question 60

Multiple Choice

You are offered a choice between $770 today and $815 one year from today. Assume that interest rates are 4%. Which do you prefer?

• A) $770 today.
• B) $815 one year from today.
• C) They are equivalent to each other.
• D) $770 today at 3% interest rates.

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Definitions:

Reaction Time

The interval of time between the presentation of a stimulus and the response to it, often used as a measure of sensory and motor performance.

Stimulus

A change in the environment that leads to a change in behavior.

Response

A reaction or reply to a stimulus or situation, which can range from physiological reactions to complex behaviors.

Gross Motor Sophistication

The advanced development of large muscle activities, such as running, jumping, and throwing, that are typically refined during early childhood.