In equilibrium, the interest rate equates the willingness of people to give up present goods in return

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In equilibrium, the interest rate equates the willingness of people to give up present goods in return for future goods and the ability of the economy to transform present goods into future goods. Explain.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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Question Posted: Nov 14, 2014 08:29 AM

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In equilibrium, the interest rate equates the willingness of people to give up present goods in return

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The interest rate is determined by the intersection of ...View the full answer

Microeconomics Theory and Applications

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