Question

Suppose an individual is impatient and finds it difficult to delay gratification -This person has a...


Suppose an individual is impatient and finds it difficult to delay gratification

-This person has a relatively high discount rate

This person has a relatively low discount rate

These character traits are unrelated to the discount rate.

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Answer #1

It can be mentioned that if the person is impatient, then what happens is that there is a chance that he is losing more as a result of which the value of money changes in a great place and this means the discount is more and because gratification is delayed this means is losing more due to high discount rate and that is the reason why he is impatient.

Therefore (a) the person has a relatively high discount rate is answer to this question

Because, if there is low discount rate delaying gratification might not affect him much and that is there would be no reason to become impatient and also discount rate is related to it because a person usually become impatient when he loses more and therefore in this regard

(b,c) are the answers to this question

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