People in developing countries, especially those with very low incomes, discount the future _________.
A) at an arbitrary rate
B) at a low rate
C) at a high rate
D) None of the above.

Question

Quizplus · Accepted Answer

Studies have shown that people in developing countries, particularly those with very low incomes, tend to discount future gains or benefits at a relatively high rate. This means that they place greater importance on immediate gains, rather than on long-term benefits. This has implications for development policies and programs, as it suggests that programs that deliver immediate gains or benefits are likely to be more effective than those that produce longer-term benefits that may be discounted by recipients.

People in Developing Countries, Especially Those with Very Low Incomes