Questions for June 14:

Countries with lower real interest rates have more development in those things that require long-term commitments. Would Bohm-Bawerk agree? Explain.

Define time preference, high time preference, low time preference, and time preference rate.

What are the two conditions necessary for capital formation to set in and continue?

What are the external and biological time preference factors? Why does it matter for these factors to be expected? What role is played by nutrition and health care?

Are members of the military more likely or less likely to have high time preferences? Explain.

Why are property rights violations harmful to capital formation? What were the examples given in class? Can you think of others?

How did credit cards come about? How did they become a mass consumption good? What is a signature loan?

Explain the relationship between the credit card rate and the federal funds rate.

Why do banks offer credit cards with no fees? What are "deadbeats"?

who are the three defects of debit cards relative to credit cards, as discussed in class?