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The Idea of Time Inconsistency

Question 29

Multiple Choice

The idea of time inconsistency:


A) explains how it can be rational for someone to say they're going to eat a salad for dinner each night this week and end up eating pizza four out of five nights instead.
B) explains how it can be rational for someone to pay more for something on their credit card than if they were to pay cash for the same thing.
C) explains why people refuse to ignore only some sunk costs,while think at the margin other times.
D) Time inconsistency doesn't explain any of these behaviors.

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