Relative Insensitivity to Delayed Rewards Helps Explain Why It Is

question 412

Multiple Choice

Relative insensitivity to delayed rewards helps explain why it is:

• A)common for people to choose the better of two immediate options.
• B)common for most people to save their discretionary income,rather than spend it.
• C)difficult for public officials to mobilize their efforts to thwart an imminent terrorist attack.
• D)difficult for people to change their behaviour to address global warming.

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Definitions:

Fed

The Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Loans

Money borrowed that is expected to be paid back with interest.

Open Market

An economic system with few barriers to free market activity where prices for goods and services are determined by supply and demand.

Excess Reserves

Excess funds maintained by a bank or financial institution above the minimum levels mandated by regulatory authorities, creditors, or the institution's internal regulations.