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You have a chance to receive $100 or $1,000 in one month, and you choose $100 today. What does this say about your time preferences?
You have a chance to receive $100 or $1,000 in one month, and you choose $100 today. What does this say about your time preferences?
1.You have a constant discount rate
2.You heavily discount current consumption in favor of future consumption
3.You heavily discount future consumption in favor of current consumption
4.You have a low discount rate
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