Which of the Following Statements Is True

question 170

Multiple Choice

Which of the following statements is true?

• A)All persons have a high rate of time preference.
• B)People with a high rate of time preference are more likely to be borrowers than people with a low rate of time preference.
• C)People with a high rate of time preference are more likely to be lenders than people with a low rate of time preference.
• D)A high interest rate is the cause of a high rate of time preference.
• E)none of the above

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Definitions:

Deferred Tax

A tax liability or asset that arises due to the temporary differences between the accounting income and the taxable income.

Goodwill

The value attributed to a company's brand name, customer relationships, and other intangible assets that are not separately identifiable.

Liabilities

are present financial obligations arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.

Tax Rate

The percentage at which an individual or corporation is taxed.