If a Society's Rate of Time Preference Increases, as May

question 75

Multiple Choice

If a society's rate of time preference increases, as may have occurred in the United States during the 1970s, then, ceteris paribus, per capita

• A) current consumption increases, future consumption decreases and economic growth accelerates in the long run.
• B) current consumption decreases, future consumption increases and economic growth decelerates in the short run.
• C) current consumption increases, future consumption decreases and economic growth decelerates in the long run.
• D) current consumption increases, future consumption decreases and economic growth stabilizes in the long run.

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Definitions:

Quarterly Amounts

Financial figures or sums calculated or reported every three months within a fiscal year.

Government Agencies

Organizations or bodies formed by a government to enact policies, enforce laws, and manage public sector activities.

Credit Balance

The amount of money in a financial account that the account holder can claim, representing a surplus of payments over charges.

Pegboard System

An organizational tool consisting of a board with holes into which pegs are placed to hang tools, keys, or other items, often used in retail or workshop settings.