The greater your discount weight, the more your current decisions are driven by the future consequences of your actions. Do you agree? Explain
What will be an ideal response?
Yes. A discount weight multiplies delayed utils to translate them into current utils. As the discount weight for the future increases, the value that is placed on a util in the future as compared to a util today, increases. That is, you value things that happen in the future more highly when your discount weight increases. Equivalently, when the discount weight rises you discount future benefits less.
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Which of the following statements is true?
A) Countries with lower investment in research and development (R&D) are likely to have higher standards of living. B) The Industrial Revolution started in the United States and spread to other parts of the world. C) The Industrial Revolution started in South America and spread to other parts of the world. D) Countries with a higher investment in research and development (R&D) are likely to have higher standards of living.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
One principal advantage of the corporations is that owners:
A. are sole proprietors. B. are not taxed for income received. C. have limited liability. D. always control the company.
An increase in the nominal interest rate, all else held constant, will always cause which of the following?
A) the real interest rate to decrease B) the expected inflation rate to decrease C) the demand for money to increase D) all of the above E) none of the above