An individual learns today that their stable, high-paying job will be eliminated in one year, after which they will have a permanently lower income. If this individual has a strong present bias, which of the following best describes their likely consumption pattern over the next few months?
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An individual learns today that their stable, high-paying job will be eliminated in one year, after which they will have a permanently lower income. If this individual has a strong present bias, which of the following best describes their likely consumption pattern over the next few months?
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