If a Saver Has a Positive Rate of Time Preference

question 49

Multiple Choice

If a saver has a positive rate of time preference then the present value of $100 to be received 1 year from today is:

• A) more than $100.
• B) not calculable.
• C) less than 100.
• D) unknown to the saver.

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Definitions:

Amyl Nitrate

A chemical compound used medicinally to treat angina and recreationally as a popper to induce a brief rush or sensation of euphoria.

Muscle Relaxant

A medication or substance that decreases muscle tone, reducing tension or stiffness in muscles.

Engorging

The process of being filled with blood, often used in the context of sexual arousal.

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, which negatively affect a person's health.