A Positive Rate of Time Preference Implies That a Person

question 47

Multiple Choice

A positive rate of time preference implies that a person would value

• A) receiving $100 today more than receiving $100 one year from now.
• B) receiving $100 today less than receiving $100 one year from now.
• C) receiving $100 today equally to receiving $100 one year from now.
• D) any amount, no matter how small, today more than receiving $100 one year from now.

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Definitions:

Continuous Metric

A measurement scale that allows for an infinite number of values within a given range, indicating continuous variation.

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.

Volume

The quantity of three-dimensional space enclosed by a closed surface or the amount of space that a substance or object occupies.

Financial and Market

Related to the economic activities and conditions that affect investment, trading, and valuation decisions in markets.