--%>

Effect of average expected lifespan on interest rate

When new medical technology raised the average expected lifespan through 10 years and people responded along with increases in their desires to have hefty “nest eggs” while they retire, it would be least probable to result into: (1) an increase in the supply of loanable funds. (2) into equilibrium, a decrease within the average expected rate of return onto investment in new economic capital. (3) increased future consumption. (4) increased interest rates. (5) increased rates of investment and capital accumulation.

I need a good answer on the topic of Economics problems. Please give me your suggestion for the same by using above options.

   Related Questions in Microeconomics

  • Q : Expansion of increasing cost industries

    Expansion of the industry in increasing cost industries causes: (w) increases in each firm’s costs at every level of output. (x) decreases in each firm’s costs at every level of output. (y) all firms to suffer long-run economic losses. (z)

  • Q : Tourist’s use of natural resources What

    What are your views about tourist’s use of natural resources?

  • Q : Implication of freedom of entry and

    Describe the implication of freedom of entry and exit to the firms beneath perfect competition.

  • Q : Illustrations of Micro economic

    Give two illustrations of Micro economic variables studies. Answer: a. Individual demand b. Individual savings

  • Q : Price equality to marginal costs A

    A nondiscriminating monopolist's equilibrium output is inconsistent along with: (w) marginal revenue equals marginal cost [MR = MC]. (x) price equal to marginal costs [P = MC]. (y) price exceeding average variable costs [P > AVC]. (z) price exceedi

  • Q : Problem on buying a used car You desire

    You desire to purchase a used car. The dealer knows accurately how well the car works and how much it must cost, although you are not sure of its value. This is an illustration of: (i) Asymmetric information. (ii) Dealer rights. (iii) Predatory pricing. (iv) First mov

  • Q : Significant monopsony power-labor market

    The firm probable to have noteworthy monopsony power in its labor market would be the: (i) Big cotton farm in the Texas hiring migrant workers. (ii) Textile manufacturer in the Hong Kong hiring the factory workers. (iii) Janitorial service organization in London hirin

  • Q : Discounted by an appropriate interest

    A fundamental principle of finance is that the net cash flows expected by an investment are: (w) all future revenues expected by the investment minus the purchase price of the capital. (x) negatively associated to the interest rates related with borrowing investment f

  • Q : Constant price elasticity plausible for

    Constant price elasticity equivalent to one for socket sets would be mainly plausible for demand curve as: (1) D1D1. (2) D2D2.  (3) D3D3. (4) D4D4. (5) D

  • Q : Perfect competition ‘In the real world

    ‘In the real world there is no industry which conforms precisely to the economist’s model of perfect competition. This means that the model is of little practical value