Which of the following is an example of positive rate of time preference?
a. buying a movie ticket the night the movie comes out
b. waiting to read your favorite book until it comes out in paperback
c. waiting until the new model of the car you want comes out
d. none of the above are examples of the positive rate of time preference
a
Economics
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The policy rate is
A) determined by monetary policy. B) a real interest rate. C) a risk premium. D) entering the IS equation.
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Adaptive expectations assumes that individuals
A) can accurately predict the future. B) base predictions on random events (i.e., animal spirits). C) form their predictions of macroeconomic variables randomly. D) use all available information in predicting the future. E) none of the above
Economics