Jones Has a High Rate (Of Positive) Time Preference and Smith

question 100

Multiple Choice

Jones has a high rate (of positive) time preference and Smith has a low rate (of positive) time preference. Which man is more likely to take out a loan to buy a car now?

• A)Smith, because he prefers earlier availability of goods to later availability of goods.
• B)Jones, because he prefers earlier availability of goods to later availability of goods.
• C)Smith, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
• D)Jones, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
• E)There is not enough information to answer the question.