Veronica is piling up debt while she is in college so that she can have the same lifestyle as her friends. She knows that she will have to pay off her debt in the future, but she is not worried because the time of repayment is far off. Veronica's thinking is an example of
A) a framing bias.
B) overconfidence.
C) a sunk cost fallacy.
D) overvaluing the present relative to the future.

Question

Quizplus · Accepted Answer

Veronica's behavior exemplifies overvaluing the present relative to the future because she prioritizes immediate gratification and lifestyle maintenance over the long-term implications of accumulating debt.

Veronica Is Piling Up Debt While She Is in College