Question
Why are we saying that a future increase in income is worth less because it is discounted? consider a increase in income of 100 in
Why are we saying that a future increase in income is worth less because it is discounted?
consider a increase in income of 100 in period 1, why do we increase our consumption in period 1 more than period two when the real interest rate equals to the degree of impatience? consider the formula of Y2/(1+r), thanks !
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
5th edition
73375829, 978-0073375823
