The idea that money has "time value" refers to the fact that:
A. people prefer to receive a given sum of money in the future rather than in the present.
B. money can be used to purchase the services of labor, as measured in hourly units.
C. a specific amount of money is more valuable to a person the sooner it is received.
D. compound interest converts future dollars into a greater amount of current dollars.
C. a specific amount of money is more valuable to a person the sooner it is received.
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To be useful, a model must
A) predict accurately all of the time. B) predict more accurately than other models that have been developed. C) have assumptions that have been verified by empirical testing. D) explain and predict the behavior of every individual.
A . If the government places a tax on land users, what will happen to the quantity of land supplied, if the supply of land is costless? What will happen to land rent? b. How will your answers to Part a . change if there are differential rents in the absence of the government tax?