Hi, the correct answer to the question is provided in red, please dont reproduce the answer as i am struggling to understand the answer, but explanations in step by step, please dont worry about the unhelpful , i will vote for helpful if its good enough . Thanks

Q8. The rst order condition for consumption says that if the real interest rate is higher than the subjective rate of discount the consumer will plan consumption to increase over time. Explain why this is so. if the real interest rate is higher than the subjective rate of discount, the consumer will postpone consumption and thus consume less today that he/she plans to consume nextyear. [iii > 1, this +p means that returns on saving are high relatively to the degree ofimpatience. Therefore a consumer will like to wait a little bit in order to consume more in the future, and consumpu'on will increase over time