If You Have a Low Rate of Time Preference, Then

question 76

Multiple Choice

If you have a low rate of time preference, then you

• A)buy goods right now because "you just can't wait."
• B)are willing to save a larger percentage of your income than a person who has a high rate of time preference.
• C)find it difficult to save much of your income because money "just sitting around" is worthless to you.
• D)are willing to borrow money to buy goods now.

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Definitions:

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Limited Liability Company

A commercial foundation that unifies a corporation's limited liability with the direct tax benefits characteristic of partnerships or sole proprietorships.

Tax Election

A choice allowed under tax law that enables taxpayers to determine how they want certain tax rules to apply to them.

Member-Managed

Pertains to an organizational structure, typically in LLCs, where all members participate directly in decision-making and management activities.