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

Question

Quizplus · Accepted Answer

As the interest rate increases, it becomes more rewarding to save for the future instead of spending money now. Therefore, people are more likely to sacrifice current consumption in order to save and earn interest on their savings. This results in a shift towards saving more and consuming less now, which involves making a trade-off between present and future consumption.

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