If $100 today is worth $150 to you in the future, then you exhibit
A)A positive time preference
B)A negative time preference
C)A neutral time preference
D)A negative marginal rate of substitution

Question

Quizplus · Accepted Answer

A positive time preference means that an individual values present consumption more than future consumption. In this scenario, the fact that $100 today is worth $150 in the future indicates a preference for present consumption, which is indicative of a positive time preference.

If $100 Today Is Worth $150 to You in the Future