If the Real Interest Rate Is Positive, Then a Unit

question 17

True/False

If the real interest rate is positive, then a unit of future consumption can be had for the sacrifice of less than 1 unit of current consumption.

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.