If interest rates are positive, one dollar today is worth
A) more than a dollar a year from now.
B) less than a dollar a year from now.
C) the same as a dollar a year from now.
D) nothing.

Question

Quizplus · Accepted Answer

Positive interest rates would imply that the value of money appreciates over time. Therefore, if someone has one dollar today, its value will increase over time due to interest earned, making it worth more than a dollar a year from now.

If Interest Rates Are Positive, One Dollar Today Is Worth