A Positive Rate of Time Preference Means That:​

question 96

Multiple Choice

A positive rate of time preference means that:​

• A)as time progresses, people value consumption more than saving.
• B)consumption in the future is more important than current consumption.
• C)current consumption is valued less than consumption in the future.
• D)consumption in the future is valued less than current consumption.
• E)consumption in the future and consumption today are positively related.

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Definitions:

Stock Splits

occur when a company divides its existing stock into multiple shares to boost the liquidity of the shares, though the overall value of the company doesn't change.

Economic Benefit

The advantage or gain derived from an economic action or activity such as investments, consumption of goods, and services.

Trading Range

The range within which a security or a market index fluctuates over a specified period.

EPS

Earnings Per Share, a financial ratio that measures the amount of profit attributed to each outstanding share of a company's common stock, indicating the company's profitability.