If You Prefer to Smooth Consumption, Which of the Following

question 66

Multiple Choice

If you prefer to smooth consumption, which of the following would you prefer?

• A) $100 of consumption today and $50 of consumption tomorrow
• B) $75 of consumption today and $75 of consumption tomorrow
• C) $50 of consumption today and $100 of consumption tomorrow
• D) You would be indifferent between all of these.

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Definitions:

Big Five Personality

A theory that describes personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Diagnostic

Pertains to the process of identifying or determining the nature and cause of a disease or condition through examination of symptoms and tests.

Statistical Manual

Refers to a handbook used for diagnosis and classification of mental disorders, for example, the DSM (Diagnostic and Statistical Manual of Mental Disorders).

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a manual published by the American Psychiatric Association that classifies and defines mental disorders.