| << Chapter < Page | Chapter >> Page > |
Card 10 / 14:
How would a decrease in expected interest rates over one’s working life affect one’s intertemporal budget constraint? How would it affect one’s consumption/saving decision?
Lower interest rates would make lending cheaper and saving less rewarding. This would be reflected in a flatter intertemporal budget line, a rotation around the amount of current income. This would likely cause a decrease in saving and an increase in current consumption, though the results for any individual would depend on time preference.
| Previous Card | ← Previous Card Button |
| Next Card | → Next Card Button |
| Flip Card | ↑ / ↓ / Return / Space |
Notification Switch
Would you like to follow the 'Openstax microeconomics in ten weeks' conversation and receive update notifications?
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|