The Term "Positive Rate of Time Preference" Suggests That

question 59

Multiple Choice

The term "positive rate of time preference" suggests that

• A)people prefer more time to do something than less time.
• B)people prefer goods to be available at an earlier time period than at a later time period.
• C)some people are irrational because they would rather have something now than wait to consume it later when they can enjoy it more.
• D)interest rates tend to increase over time.
• E)businesses know that if they invest in capital goods, they will earn profits.

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Definitions:

General Solicitation

The act of publicly advertising or promoting an investment opportunity, often regulated by securities law to protect investors.

Noninvestment Company

An entity primarily engaged in operations other than investing, reinvesting, or trading in securities and does not qualify as an investment company under relevant regulations.

1933 Act

The U.S. Securities Act of 1933, a federal law enacted as a result of the stock market crash of 1929, aimed at regulating the securities market and protecting investors.

Registration Statement

A set of documents, including a prospectus, filed with a regulatory body like the SEC by companies wishing to issue public shares.