People Engage in Intertemporal Substitution Because They

question 157

Multiple Choice

People engage in intertemporal substitution because they:

• A) are required to work longer hours when economies are expanding.
• B) are rational.
• C) are trying to achieve consumption smoothing.
• D) prefer fluctuations in their incomes.

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Definitions:

Trait Theory

A psychological perspective that focuses on the identification and measurement of consistent personality characteristics (traits) that vary among individuals.

Allport

Refers to Gordon Allport, a psychologist known for his theory of personality that emphasized the uniqueness of the individual and the concept of personal traits.

Personality

An individual's distinct and consistent patterns of feeling, thinking, and behaving.

Functional Autonomy

A concept introduced by psychologist Gordon Allport, suggesting that some behaviors might start with an external motive but become self-sustaining or autonomous over time.