If Ronnie calculates that $150 in the future is worth $100 today,then he is showing a ________ time preference.
A) positive
B) neutral
C) negative
D) increasing
E) decreasing

Question

Quizplus · Accepted Answer

Ronnie's calculation indicates a positive time preference, meaning he values present consumption more than future consumption, as shown by the fact that he considers $150 in the future to be equivalent to $100 today.

If Ronnie Calculates That $150 in the Future Is Worth