A person is dynamically consistent if
A) His preferences over the alternatives available at some future date change as the date approaches or once it arrives
B) His preferences over the alternatives available at some future date do not change as the date approaches or once it arrives
C) He does not always want to follow through on his plans and intentions
D) A and C

Question

Quizplus · Accepted Answer

Dynamic consistency refers to the ability of an individual to maintain a consistent set of preferences over time. Thus, a person is dynamically consistent if his preferences over the alternatives available at some future date do not change as the date approaches or once it arrives. Options A and C are incorrect as they imply that the individual's preferences change over time, making them not dynamically consistent.

A Person Is Dynamically Consistent If