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A Young Boy Is Saving Money for a Baseball Bat

Question 96

Multiple Choice

A young boy is saving money for a baseball bat but is tempted to buy an ice cream cone.If the boy successfully resists buying ice cream and continues to save for the bat,the boy has


A) exchanged high time preferences for low.
B) exchanged low time preferences for high.
C) engaged in consumption smoothing.
D) increased his consumption variance.
E) increased his wealth.

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