Multiple Choice
There are two societies, A and B, that are alike in every way but one. In society A, people have a high rate of time preference, and in society B, people have a low rate of time preference. It follows that
A) the demand for consumption loans will probably be lower in A than B.
B) interest rates will be lower in B than A.
C) there will be more saving in A than B.
D) b and c
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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