Which scenario represents time inconsistency?
A) A person prefers $80 today to $100 one year from now but prefers $100 in six years to $80 in five years.
B) You prefer receiving $2 on January 1st of this year to receiving $1 on January 2nd of this year, and you prefer $2 on January 1st of next year to $1 on January 2nd of next year.
C) A person prefers $100 in one year to $80 today but prefers $100 in six years to $80 in five years.
D) You value $1 today more than $1 tomorrow.
Correct Answer:
Verified
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