Multiple Choice
Which of the following is an example of a commitment device?
A) Lu-yin has part of each paycheck deposited in a vacation savings account
B) Tassili is indifferent between (a) paying $1 in three years and receiving $2 in four years or (b) paying $1 today and receiving $2 next year
C) Frank eats a piece of cake today and saves the rest of the cake for eating later
Correct Answer:
Verified
Correct Answer:
Verified
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