A person with a very high positive time preference for consumption
A) will have a high savings rate.
B) will have a low savings rate.
C) prefers savings to consumption.
D) is not as likely to borrow money as other people with lower positive time preference.

Question

Quizplus · Accepted Answer

A person with a high positive time preference for consumption prefers to consume now rather than save for the future, leading to a lower savings rate.

A Person with a Very High Positive Time Preference for Consumption