--%>

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 : Total revenue on profit-maximizing

    Total revenue roughly for the profit-maximizing lumber mill equivalents: (i) $1700 daily. (ii) $2500 daily. (iii) $3500 daily. (iv) $4590 daily. (v) $6000 daily.

    Q : Minimal Materials in Relative Poverty

    After the minimal materials essential for survival are attained, poverty becomes: (w) an absolute concept. (x) more prevalent in North America than elsewhere. (y) measured by the income level required to meet minimal psychological needs. (z) a relativ

  • Q : The Reciprocal Trade Agreements Act

    Select the right ans wer of the question. The Reciprocal Trade Agreements Act: 1) exempted American exporters from the Sherman Antitrust Act. 2) provided technological assistance to developing countries. 3) brought about considerable reductions in American trade barri

  • Q : Estimate the slope for price and

    When the price reduces and quantity demanded increases along such demand curve for pizza, in that case the slope: (w) is constant and elasticity falls. (x) and elasticity are constant. (y) increases and elasticity is constant. (z) and elasticity increase.

  • Q : Problem on Supply of Labor Can someone

    Can someone help me in finding out the right answer from the given options. The time in which people are willing and capable to work at different wage rates throughout a specific period is termed as the: (1) Labor force participation rate. (2) Supply of labor. (3) Mar

  • Q : Change in supply of good and in price

    When a change in the supply of a good causes a percentage change within price which exceeds in absolute value the resulting percentage change within quantity demanded, then demand is relatively: (1) price elastic. (2) inferior. (3) no

  • Q : Net income by negative income tax Under

    Under the negative income tax system demonstrated in this figure, a family of four along with no earned income would have a net after-tax income of: (1) $15,000 per year. (2) $10,000 per year. (3) $5,000 per year. (4) $2,500 per year. (5) $0 per year.

  • Q : Right-to-Work Laws problem Can someone

    Can someone help me in finding out the right answer from the given options. The provisions of Taft Hartley Act did not proscribe: (i) Secondary boycotts. (ii) Closed shops. (iii) Jurisdictional strikes. (iv) Right-to-work laws.

  • Q : Increase profits of quantity selling by

    When a monopolist was selling a quantity which marginal revenue [MR] is greater than marginal costs [marginal costs [MC] in that case this could increase profits by: (w) raising price. (x) increasing output. (y) raisi

  • Q : Severe Poverty of Demography From the

    From the 1950 year, severe poverty has declined most sharply in between people while they experience: (w) low levels of education. (x) discrimination in employment. (y) old age. (z) poor health. Can someone explain