Sally wants to take out her entire savings from her superannuation to spend today. Is this acting in a time inconsistent manner (according to behavioural economics)? a) Yes b) No Explain:
Sally wants to take out her entire savings from her superannuation to spend today. Is this acting in a time inconsistent manner (according to behavioural economics)? a) Yes b) No Explain:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Sally wants to take out her entire savings from her superannuation to spend today. Is this acting in a time inconsistent manner (according to behavioural economics)?
a) Yes b) No
Explain:
Expert Solution
Step 1
Behavioural economics refers to the economic measures of the psychology and buying decision of the people. It deals with the effects of psychological, emotional and social factors on the consumer's choice. The timing of taking a decision may be affected by the psychology of the decision maker. It can further have an impact on the choices available in the future.
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