Asked by Alexis Rampey on Jun 08, 2024

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Time inconsistency refers to the phenomenon where your present self misjudges what your future self will do.

Time Inconsistency

The tendency for people to change their plans about future actions due to a lack of alignment between their short-term desires and long-term goals.

Present Self

The concept of one's current identity or self-perception at the present moment.

Future Self

The concept of envisioning oneself in the future, often used in psychology and financial planning to motivate current actions that benefit one's future.

  • Comprehend the concept of time inconsistency and its implications on decision-making.
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Monikpal SinghJun 10, 2024
Final Answer :
True
Explanation :
Time inconsistency refers to the tendency for people to make choices that their future selves may regret, based on the assumption that their preferences will remain stable over time. This can lead to short-term decisions that contradict long-term goals.