Professor Smith completed a study that showed that 60 percent of all the students who graduated from her college purchased new cars. What might explain this?

Question

Quizplus · Accepted Answer

The Answer is These students were likely to have accepted jobs at higher wages than the jobs they had as undergraduates. Since employment at a specific salary will allow you to take out a loan, these students probably borrowed the money expecting to pay it back, with interest, from their future income. These students are demonstrating a positive rate of time preference.

Professor Smith Completed a Study That Showed That 60 Percent