If a Saver Has a Positive Rate of Time Preference

question 49

Multiple Choice

If a saver has a positive rate of time preference then the present value of $100 to be received 1 year from today is:

• A) more than $100.
• B) not calculable.
• C) less than 100.
• D) unknown to the saver.

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Definitions:

Materials

Raw substances or components used in the manufacturing process to create products.

Equivalent Units

A concept used in cost accounting to convert the amount of work done on partially finished goods into the number of fully completed units.

Materials

Substances or components that are used in the production process to create a finished product.

First Processing Department

The initial stage or department in a manufacturing process where raw materials begin to be transformed into finished products.