Why Is a Dollar Today More Valuable Than a Dollar

question 212

Multiple Choice

Why is a dollar today more valuable than a dollar a year from now?

• A) The dollar today can be immediately used to buy something.
• B) A dollar a year from now will likely have less purchasing power because of inflation.
• C) The unknown future is riskier than the known present.
• D) All of the above.

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Definitions:

Urbanization

is the process by which cities grow and societies become more urban in character, often characterized by a decrease in rural population and an increase in urban living.

Economic Inequality

The unequal distribution of wealth, income, and economic resources among individuals, households, or communities within a society or globally.

Suicide Victim

An individual who has died as a result of intentionally ending their own life.

Typical Reaction

The common or expected response that people have to a particular situation or stimulus.