Rational people prefer to experience immediate benefits and delayed costs because:
A)a fixed amount of money is worth less to us now than in the future.
B)a fixed amount of money is worth more to us now than in the future.
C)the value of a fixed amount of money does not change over time.
D)rational people have insatiable wants.

Question

Quizplus · Accepted Answer

A fixed amount of money is generally considered to be worth more to us now than in the future due to the concept of time value of money. This principle suggests that a given amount of money today has a greater value than the same amount in the future because of its potential earning capacity. This is the underlying reason why rational people prefer to receive benefits sooner rather than later, while preferring to delay costs.

Rational People Prefer to Experience Immediate Benefits and Delayed Costs