Bobby faces two choices. The first is to receive $600 on the spot. The other choice is to receive $800 a year from now. The interest rate is 5% per year. What could a possible explanation for Bobby choosing to receive $600 on the spot?
A) Bobby finds that the present value of the $800 a year from now is less than $600.
B) Bobby may have time-inconsistent preferences.
C) Although Bobby chooses $600 on the spot, he is actually indifferent between the two options.
D) None of the above is correct.
B
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Which of the following best describes rule utilitarianism?
a. a person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations b. a person who considers a situation and decides upon the easiest course of action c. a person who considers an action and determines whether it would end favorably for them d. a person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved
Which of the following is not a goal of the Fed?
a. Maintaining a high level of employment b. Maintaining stability in interest rates c. Maintaining high prices to encourage production d. Maintaining stability in financial markets e. Maintaining stability in foreign exchange markets