The greater your discount weight, the more your current decisions are driven by the future consequences of your actions. Do you agree? Explain
What will be an ideal response?
Yes. A discount weight multiplies delayed utils to translate them into current utils. As the discount weight for the future increases, the value that is placed on a util in the future as compared to a util today, increases. That is, you value things that happen in the future more highly when your discount weight increases. Equivalently, when the discount weight rises you discount future benefits less.
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If the economy is operating in the relatively steep (upper) portion of its aggregate supply curve, a reduction in the money supply will:
A. increase the interest rate and increase employment. B. reduce the interest rate and increase employment. C. increase the interest rate and reduce the price level, assuming it is flexible downward. D. reduce the interest rate and increase the price level.
When a firm sells its good abroad below the cost of producing the good the firm is
A. using the concept of comparative advantage. B. taking advantage of the infant industry argument. C. taking advantage of absolute advantage. D. dumping.