________ argues that the promise of receiving a future dollar is worth less than having the same dollar amount in the present. A dollar now can be invested at the current interest rate and produce principal plus interest in the future.
A) The Law of Diiminishing Returns
B) The Economies of Scale Concept
C) The trend of long run average fixed cost
D) Present Value Theory
E) The Law of Increasing Opprtunity Cost

Question

Quizplus · Accepted Answer

Present Value Theory argues that the promise of receiving a future dollar is worth less than having the same dollar amount in the present. A dollar now can be invested at the current interest rate and produce principal plus interest in the future.

________ Argues That the Promise of Receiving a Future Dollar