--%>
Assignment Help - homework help

Effect of future consumption on interest rate

When households become increasingly willing to defer current consumption in order that they can enjoy greater future consumption, in that case the: (1) interest rate rises. (2) equilibrium investment level rises. (3) present value of future income rises. (4) interest rate falls. (5) age-earnings profile shifts to the left.

Please guys help to solve this problem of Economics with some explanation.

   Related Questions in Microeconomics

  • Q : Shift in demand curve Describe the

    Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to supp

    		•
  • Q : Short run operation and long run

    When Presidio, Hybrid Roses and Texas boomed learned which its rent and utilities had soared upward by $9 per hour hence a new five-year lease would now cost $60 per hour, therefore this monopolist will: (w) continue to realize positive economic profi

    		•
  • Q : Earn zero economic profit by

    When a monopolistic competitor is earning zero economic profit, in that case this: (1) sells at a price equal to average total cost. (2) sells at a price equal to marginal cost. (3) is at the minimum point on its average total cost cu

    		•
  • Q : Competition from poor substitutes A

    A firm in an industry which is a pure monopoly faces as: (w) many competitors from into the industry. (x) competition from only poor substitutes produced in other industries. (y) a market demand curve which is horizontal. (z) prosecution when it impor

    		•
  • Q : Freedom of entry-exit in long run

    Contestable markets and purely competitive markets share the feature of: (w) collusive behavior of huge firms. (x) freedom of entry and exit into the long run. (y) widespread product differentiation. (z) persistent economic profits.

    Q : Total revenue in profit-maximizing

    Total revenue (i.e., TR=PQ) for such profit-maximizing competitive firm equals area as: (a) 0P1gq5. (b) 0P1dq4. (c) 0P2cq3. (d) P2

    		•
  • Q : Problem on Agency Shop I have a problem

    I have a problem in economics on Problem on Agency Shop. Please help me in the following question. The Nonunion members can’t ‘free-ride’ in the states with Right-to-Work laws when a company agrees to operate a or an: (i) Closed shop

    		•
  • Q : Hire labor at any amount in purely

    When this purely competitive firm can hire any amount of labor at pre hour wage of $9 per worker, in this given figure, as it will hire: (1) L2 workers. (2) L3 workers. (3) L4 workers. (4) L5 workers. (5) L<

    		•
  • Q : Output level of profit maximizing of

    The profit maximizing competitive firm in illustrated graph will: (i) produce output level q5. (ii) minimize total costs by producing output level q3. (iii) experience fixed costs equal to 0P3fq4. (iv) produce output level q4. (v) inevitably experienc

    		•
  • Q : Justified investment by paying income

    When the price of each of the given assets is $10,000 and the interest rate is 10%, then investment is most justified for: (1) a perpetuity paying $900 annually. (2) a machine with a 3 year life which can be leased to an outsider for $10 per day. (3) an income stream

    		•