Exponential discounting functions imply that a deferred good is discounted in value by a ___________ fraction per unit time.
A) decreasing
B) constant
C) increasing

Question

Quizplus · Accepted Answer

Exponential discounting functions imply that a deferred good is discounted in value by a constant fraction per unit time, reflecting a consistent rate of time preference over different periods.

Exponential Discounting Functions Imply That a Deferred Good Is Discounted