Suppose That You Have $100 Today and Expect to Receive

question 36

Multiple Choice

Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. What is the slope of this budget constraint?

• A)−0.75
• B)−1.00
• C)−1.25
• D)−2.25

---

Definitions:

Native Language

The first language a person learns from birth, often used within the family and community setting.

Language Learning

The process through which individuals acquire the ability to comprehend and communicate in a language.

Live Interaction

Real-time communication or engagement between two or more individuals, often implying face-to-face or digital interaction.

Habituation Tasks

Experimental procedures used to measure how the frequency or intensity of a subject's response decreases when a stimulus is presented repeatedly.