If an Investor Had a Choice of Receiving $1000 Today

question 67

Multiple Choice

If an investor had a choice of receiving $1000 today, or $1000 in five years, which would the average investor prefer?

• A)$1000 in five years because they are not good at saving money
• B)$1000 today because it will be worth more than $1000 received in five years
• C)$1000 in five years because it will be worth more than $1000 received today
• D)Investors would be indifferent to when they would receive the $1000

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Definitions:

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a specified price point over a certain timeframe.

Price

The amount of money or the value that is considered to be the equivalent of a good or service.

Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how consumers' purchasing decisions are affected by price changes.

Natural Gas

A fossil fuel used primarily for heating, electricity generation, and as a fuel for vehicles, consisting mainly of methane and found underground.