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The Concept of Time Inconsistency Explains

Question 5

Multiple Choice

The concept of time inconsistency explains:


A) how someone who plans to eat salad for dinner every night, but ends up eating pizza three nights in a row, can still be rational.
B) how someone who pays more for a good using a credit card than if cash were used can still be rational.
C) why people can ignore some sunk costs but cannot ignore others.
D) None of these behaviors can be explained by time inconsistency.

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