Which of the following behaviors is most consistent with a low discount rate? (choose one)    1) Regularly brushing  and flossing your teeth    2) Smoking a pack of cigarettes a day    3) Maintaining a high credit card balance    4) Piling up dirty dishes in the sink

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Which of the following behaviors is most consistent with a low discount rate? (choose one)
  
1) Regularly brushing  and flossing your teeth
  
2) Smoking a pack of cigarettes a day
  
3) Maintaining a high credit card balance
  
4) Piling up dirty dishes in the sink
Expert Solution
Step 1

Discount rate refers to the behavioral changes occur in the individual of the economy compare and decide the changes in the pattern, i.e., either to save or spend the money in the economy. 

Individual with more or high patient showcase lower discount rate as they can control their behavior and people with impatient behavior have high discount rate.  

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