59. When time preference rises, we do not expect to see: a. consumption goods pr

Question

59. When time preference rises, we do not expect to see: a. consumption goods prices fall. b. us wanting more current consumption. c. us saving less. d. interest rates rise. e. None of the above. 60. A business cycle theory must explain all of the following except for: a. the tendency towards repetitive cycles. b. the “mammoth" cluster of entrepreneurial errors. c. the rise in unemployment compensation. d. why the depression is more intense in capital goods. e. why retail is the least and last to fall. 61. If our time preference rises and we want more current consumption, we will: a. save less, and the interest rate will rise. b. save less, and the interest rate will fall. c. save more, and the interest rate will rise. d. save more, and the interest rate will fall. e. not change how much we save and the interest rate will remain unchanged. 62. Which of the following do Austrians economists believe helps to stabilize the economy? a. Printing more money. b. More government involvement. c. Little to no government involvement. d. The Keynesian model. e. The Monetarist model.

Explanation / Answer

First question is answered below.

59.

Correct option: a. consumption goods prices fall

Reason: As time preference increases, demand for consumption goods will increase, which will then increase the price of such goods.

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