How does time preference affect one's willingness to invest in human capital?
A) A higher rate of time preference tends to increase human capital investment.
B) A higher rate of time preference tends to decrease human capital investment.
C) A lower rate of time preference tends to decrease human capital investment.
D) Economists have found no relationship between time preference and human capital investment.
Question 2
The democratic political process is weighted in a manner that favors
A) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect output before they affect the price level.
B) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect the price level before they affect output.
C) expansionary over contractionary policies because changes in aggregate demand tend to affect output before they affect the price level.
D) expansionary over contractionary policies because changes in aggregate demand tend to affect the price level before they affect output.
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