In order to compare benefits today with future costs,we need to know:
A) the interest rate.
B) the rate of inflation.
C) the uncertainty associated with future benefits and costs.
D) All of these statements are true.
The value of money changes over time because:
A) there is an opportunity cost of waiting for money in the future.
B) people prefer to save money rather than spend it immediately.
C) the government collects taxes.
D) none of the reasons listed here cause the value of money to change over time.
Which of the following decisions are complicated by the value of money changing over time?
A) Buying a $100 concert ticket
B) Buying a $100 stock
C) Buying a $100 sweater
D) Buying a $100 blender
Rational people having preferences for immediate benefits and delayed costs is another way of saying that:
A) money is worth less to us now than in the future.
B) money is worth more to us now than in the future.
C) the value of money does not change over time.
D) rational people have insatiable wants.