As the Interest Rate Increases,ceteris Paribus,the Trade-Off Between Present and Future

question 26

Multiple Choice

As the interest rate increases,ceteris paribus,the trade-off between present and future consumption

• A)Makes it more appealing to sacrifice current consumption.
• B)Is not affected.
• C)Encourages less saving.
• D)Makes it less appealing to sacrifice present consumption.

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Definitions:

Reinforcer

In operant conditioning, any event that strengthens the behavior it follows.

B.F. Skinner

An American psychologist and behaviorist best known for his work in developing the theory of operant conditioning.

Appraisals

Evaluations or judgments about the significance of an event as it relates to one's well-being.

Evolutionary Psychology

Discipline that seeks to apply principles of natural selection to understand the causes of human behavior.