Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
This is because consumption goods are for current satisfaction but capital goods are goods that can be used for producing consumption goods in the future. Society that reduces the production of consumption goods in favor of capital goods will result in more consumption goods in the future.
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Exchange rate transactions that involve the immediate transfer of bank deposits are known as ________
A) backward transactions B) forward transactions C) spot transactions D) dog transactions
An appreciation of the domestic currency can be caused by ________
A) a decrease in the domestic interest rate B) an increase in the domestic interest rate and expectation of an increase in the value of the domestic currency C) an increase in the domestic interest rate and the expectation of a decrease in the value of the domestic currency D) the expectation of a decrease in the value of the domestic currency