Problem
Assume that the residents of a nation become more patient (experience a reduction in their time preferences).
a. What will happen to the interest rate in that nation? What will happen to the equilibrium level of investment in that nation? Explain your answers.
b. In the long run, how will the lower time preferences affect the levels of capital and income growth in that nation?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.