A positive rate of time preference means that
A) time is relative to consumption
B) consumption in the future is more important than consumption today
C) consumption today is valued less than consumption in the future
D) consumption in the future is valued less than consumption today
E) consumption in the future and consumption today are positively related
Correct Answer:
Verified
Q33: If Arnold has a positive rate of
Q34: Which of the following does not reflect
Q35: The interest rate compensates
A)bankers for their time
Q36: Interest is a payment for deferred
A)taxation
B)saving
C)consumption
D)investment
E)none of
Q37: If the annual interest rate is 5
Q39: If the annual interest rate is 4
Q40: By saving, households
A)are supplying loanable funds
B)are demanding
Q41: Exhibit 13-2 Q42: If a firm can borrow or lend Q43: Exhibit 13-3 
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