Current consumption over future consumption

When households’ start increasingly to prefer current consumption over future consumption, in that case the: (w) interest rate rises. (x) interest rate falls. (y) present value of future income rises. (z) equilibrium rate of investment within human capital rises.

Please choose the right answer from above...I want your suggestion for the same.

View Complete Question

Related Questions in Microeconomics

Q : Microeconomics Question #2 Consumer

Question #2 Consumer Demand. How to answer questions from a-g iii. I belive the MRS is 2y/x for B. But not sure

Q : Lorenz curve as graphical device A

A Lorenz curve is graphical device which can be utilized to portray the: (w) number of people below the poverty level. (x) conflict between high tax rates and high tax revenues. (y) relative inequalities in the distribution of a variable across a popu

Q : Price crosses elasticity of demand when

When a 2% raise in the price of Kibbles causes a 1% raise in the quantity sold of Bits, in that case their price cross elasticity of demand is approximately _____ and such goods are _____. (w) -2; complements (x) 0.5; substitutes (y) 2; substitutes (z

Q : Problem on Dynamics When drought causes

When drought causes ranchers to in advance take cattle to the market, one short-run tendency will be for: (1) The demand for beef to rise. (2) Restaurants to experience shortages of the steak. (3) Prices for pork and lamb to decline. (4) Corn and wheat to become less

Q : Similarity of elasticities of demand

When a price hike for regular gas from $2.00 to $2.20 reduces quantity demanded from 20 million gallons to 19 million gallons daily, and an raise in the price of premium gas from $3.00 to $3.20 decreases its quantity demanded daily from 20 million gal

Q : Consuming equal successive units of good

The idea that additional satisfaction ultimately declines from consuming equivalent successive units of any good is the law of: (1) Consumer deficits. (2) Equivalent marginal utilities per dollar. (3) Diminishing marginal utility. (4) Veblen’s inequality. (5) Co

Q : Problem on Monopsonistic exploitation I

I have a problem in economics on Monopsonistic exploitation. Please help me in the following question. The Monopsonistic exploitation of labor signifies that the: (i) Influenced workers receive much low wages. (ii) Firm reaps big economic gains by exploiting the worke

Q : Positional Goods Consider things like

Consider things like yachts, tattoos, mansions, Harley-Davidsons or bling. Whenever the satisfaction derived from the good depends just weakly on an intrinsic attributes of the good and much strongly on how the good signals group membership or the status, power or soc

Q : Contrast of the law of reducing

Which of the given seems a contrast of the law of reducing marginal utility? (i) Howard quit utilizing grocery coupons if he won the lottery. (ii) Joan finds that her try in preparing for a date surpasses the enjoyment gained. (iii) Ken enjoys his thi

Q : Minimum wage law for poor workers A

A minimum wage law does NOT make pressures which tend to: (1) benefit high wage workers. (2) cause unemployment among unskilled workers. (3) uniformly help poor workers. (4) increase teenage unemployment. (5) foster discrimination.

Discover Q & A

Leading Solution Library

Avail More Than 1416479 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1944971
Asked

3,689

Active Tutors

1416479

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment