What Would Be More Valuable, Receiving $1,895 Today or Receiving

question 64

Multiple Choice

What would be more valuable, receiving $1,895 today or receiving $3,450 in six years if interest rates are 8 percent?

• A)Receiving $1,895 today
• B)Receiving $3,450 in six years
• C)They are worth the same amount
• D)Need more information to make a determination

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Definitions:

Unemployment

The situation when individuals who are capable of working and are actively seeking work are unable to find employment.

Equality

A state of being equal, especially in status, rights, and opportunities.

Positive Economics

The branch of economics that concerns itself with describing and explaining economic phenomena as they are, not as they should be.

Normative Economics

An area of economics that analyzes outcomes based on value judgments about what is desirable or what ought to be, rather than what merely is.