Why is a dollar today more valuable than a dollar a year from now?
A) The dollar today can be immediately used to buy something.
B) A dollar a year from now will likely have less purchasing power because of inflation.
C) The unknown future is riskier than the known present.
D) All of the above.

Question

Quizplus · Accepted Answer

A dollar today is more valuable because it can be used immediately (A), it may lose purchasing power due to inflation (B), and the future is uncertain and riskier (C).

Why Is a Dollar Today More Valuable Than a Dollar