The time period variable reflects the fact that:

Question

Quizplus · Accepted Answer

The time period variable reflects the fact that a tax dollar paid in the current year is worth more than a tax dollar paid in a future year due to the time value of money. This is because the current-year tax dollar can be invested and earn a return, while a future-year tax dollar cannot. Therefore, choices A and C are incorrect as they do not accurately reflect the time period variable. Choice D is also incorrect as there is a valid explanation for the time period variable.

The Time Period Variable Reflects the Fact That