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 you value present goods more than future goods. By saying that $100 today is worth $150 in the future, it indicates a preference for present goods over future goods, which is a characteristic of a positive time preference.

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