Asked Feb 1, 2020

The law of Time Preference tells us that 

A. People always value a good available in the near future more highly than an equal quantity of the same good available in the more remote future, all other things equal

B. People prefer a greater quantity of a good to a lesser quantity of the same good

C. People will always choose the shortest processes of production

D. People will always devote more of their resources to consumption than to investment, all other things equal


Expert Answer

Step 1

To explain the law of time preference.

Step 2

The law of time preference tells that people always prefer to consume a good sooner rather than later. This is the assumption of human behavior/ human a...

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