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.

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Definitions:

Directional Selection

A natural selection process by which one extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.

Antibiotic Resistance

The ability of microorganisms to withstand the effects of antibiotics, often due to genetic changes.

Directional Selection

A type of natural selection that favors individuals at one extreme end of the phenotypic range, leading to a shift in a population's genetic variance over time.

Pesticide-Resistant

Refers to the ability of pests to withstand chemical treatments designed to kill or control them, often due to genetic mutations and selection pressure.