If Fred Were to Consume $1,050 1 Year from Now

question 29

Multiple Choice

If Fred were to consume $1,050 1 year from now, he would consider this as good as spending $1,000 today.He would consider $1,628.89 of consumption 10 years into the future equivalent to $1,000 of consumption today.If the interest rate is 5%, Fred preferences

• A)are consistent with exponential discounting.
• B)are consistent with hyperbolic discounting.
• C)are consistent with geometric discounting.
• D)are inconsistent.
• E)violate the Weak Axiom of Revealed Preference.

---

Definitions:

Material Contradictions

Discrepancies or conflicts within the material aspects of a society, such as economic disparities or contradictions between productive forces and relations of production.

Social Change

Significant alteration over time in behavior patterns, cultural values and norms, and social structures.

Dialectical Philosophers

Thinkers who employ the dialectical method, involving the logic of contradiction and opposition, to explore and understand social and philosophical issues.

Social Psychologists

Specialists in a field of psychology that examines how social influences affect individual behavior, thoughts, and feelings.