If the Interest Rate Is Zero, a Promise to Receive

question 90

Multiple Choice

If the interest rate is zero, a promise to receive a $100 payment one year from now is:

• A)More valuable than receiving $100 today
• B)Less valuable than receiving $100 today
• C)Equal in value to receiving $100 today
• D)Equal in value to receiving $101 today

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Definitions:

American Adults

Typically refers to individuals aged 18 and over living in the United States, often studied in various contexts such as health, economy, and society.

Addictive

A characteristic of substances or behaviors that can lead to a compulsive need for and use of a habit-forming substance or activity.

Education

The process of receiving or giving systematic instruction, especially at a school or university, but also through life experiences and self-learning.

Lower Rates of Asthma

A decrease in the incidence of asthma, a chronic respiratory condition marked by episodes of airflow obstruction.