Which of the following statements is true?

Question

Quizplus · Accepted Answer

People with a high rate of time preference tend to prioritize immediate gratification over long-term rewards, which can lead them to borrow money more frequently. Conversely, people with a low rate of time preference tend to prioritize long-term rewards and are more likely to save and invest their money, which could result in them becoming lenders. However, it is important to note that individuals can have varying degrees of time preference and that factors such as income, culture, and personal circumstances may influence their borrowing and lending behavior. Option A and D are incorrect because not all persons have a high rate of time preference, and high interest rates are not necessarily the cause of a high rate of time preference. Option C is also incorrect because people with a low rate of time preference are more likely to be lenders than people with a high rate of time preference.

Which of the Following Statements Is True