Multiple Choice
If individuals make intertemporal choices using "hyperbolic discounting",this may create inefficient choices because individuals will:
A) not take account of their time preferences.
B) make choices that are inconsistent over time.
C) have a preference for only consuming in the future.
D) confuse nominal and real interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: The annual rental rate for a machine
Q5: The present value of $1 payable in
Q10: The "rate of return" refers to:<br>A)the increase
Q12: The present value of $1 payable in
Q13: If a tree's value (v)is growing according
Q14: Adding uncertainty to future consumption will tend
Q16: In Fisher's model of the determination of
Q17: A consumption-based theory of the determination of
Q18: Under a consumption-based theory of the pricing
Q25: An increase in the corporate profits tax