A commitment device is:
A. an arrangement entered into by an individual with the aim of helping fulfill a plan for future behavior that would otherwise be difficult.
B. a way to deal with time inconsistency.
C. something that helps people conquer their vices.
D. All of these are true.
D. All of these are true.
You might also like to view...
A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a
A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.
The Gramm-Rudman-Hollings Act of 1985 was designed to set a timetable to
a. reduce the national debt to zero b. replace the progressive income tax with a flat-rate tax c. make Social Security fiscally sound d. replace the Social Security tax with a value-added tax e. reduce deficit spending