The value of $100 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 these are true.

Question

Quizplus · Accepted Answer

The value of $100 changes over time primarily due to the concept of the time value of money, which is reflected in choice A. The opportunity cost of waiting for money in the future means that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle underlies investments, interest rates, and the economic rationale for preferring money now rather than later. Choices B and C do not directly explain why the value of $100 changes over time.

The Value of $100 Changes Over Time Because