Most People Have a Time Preference

question 126

Multiple Choice

Most people have a time preference.Since this is true:

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

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Definitions:

Breast Milk

The milk produced by human breasts or mammary glands, specifically designed to feed babies and infants, containing essential nutrients for development.

Demand Curve

A visual chart that illustrates how the demand for a product or service, as indicated by the quantity consumers are willing to purchase, varies with price changes over a specific timeframe.

Life Threatening Disease

A severe health condition that has a high probability of causing death.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.