Question

    Other things remaining constant, money received tomorrow

    is ______ received today.
    A more valuable than Correct Answer Incorrect Answer
    B less valuable than Correct Answer Incorrect Answer
    C the same as Correct Answer Incorrect Answer
    D either more valuable or the same, but cannot be less valuable than Correct Answer Incorrect Answer

    Solution

    Money received tomorrow is less valuable than money received today. This concept is based on the principle of time value of money, which states that a sum of money received today is more valuable than the same sum of money received in the future. This is because money has the potential to earn interest or returns when invested, and receiving it earlier allows for more investment opportunities. Due to inflation and the opportunity cost of not having the money available for investment or consumption, money received in the future is worth less than money received today. Therefore, it is generally preferred to receive money sooner rather than later.

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