We explain several discounted utility anomalies  using the standard exponential discounting and  stochastic income.
We derive general discount factors for gains and losses that depend on the current income, dated payoffs, and characteristics of the stochastic process for income. If the process has a long-run central tendency, then agents whose current income is above the central tendency use the discount rate which is an increasing function of time. Agents, whose current income  is less than the long-run average by a certain non-zero margin, exhibit hyperbolic discounting. Agents who are neither too rich nor too poor have hump-shaped discount rate curves.