Suppose that many consumers tend to over-state the discount rate that should be used for computing the net present value of education, just as they do when making investments in durable goods like cars and appliances
What would happen if consumers (as a group) started to use lower discount rates when making decisions about their education? A) NPV of a degree declines, demand for eduction declines
B) NPV of a degree declines, demand for education increases
C) NPV of a degree increases, demand for education declines
D) NPV of a degree increases, demand for education increases
D
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Which of the following is a possible outcome of setting a legal maximum rental rate below the market clearing rental rate?
A) an increase in the quantity of rental housing supplied B) a decrease in the quantity of rental housing demanded C) a black market in rental housing D) a surplus of rental housing