Most People Have a Time Preference

question 50

Multiple Choice

Most people have a time preference.Since this is true,they

• A) must earn interest to consume now (save later)and are willing to pay interest to consume later (save now).
• B) must be paid interest to consume later (save now)and are willing to pay interest to consume now (save later).
• C) are willing to accept simple interest in the short run but only compound interest in the long run.
• D) will accept positive rates of interest on checking accounts and negative rates of interest on savings accounts.
• E) prefer more free time to less free time.

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Definitions:

Confidence

The feeling or belief that one can rely on someone or something; self-assurance.

Silent Customer

A term for a customer who experiences dissatisfaction with a service or product but does not voice their complaints to the provider.

Silent Customer

A consumer who does not vocally express dissatisfaction with a service or product, often providing little feedback that businesses can act on.

Attitude

A consistent pattern of thoughts or emotions regarding a person or thing, usually manifested in how one acts.