Your roommate arrives home and says,"I am so hungry,I would give up my iPhone for a bowl of chili right now." You say,"Here is the chili-let's trade." Based on this information:
A) you have a lower time preference than your roommate because you get the iPhone now.
B) you have a lower time preference than your roommate because he gets the chili now.
C) the one willing to accept a lower nominal interest rate has a higher time preference.
D) your roommate would be a borrower and you a lender.
E) your roommate would engage in consumption smoothing but you would not.
Correct Answer:
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