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Let’s talk about two tradeoffs we face every day: how we spend our time and money.
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We can only do two things with income: spend it or save it. Time is the ultimate resource. We can choose to spend time working to earn an income or we can do other things, broadly classified as leisure. Reply to these prompts to start your discussion:
- • How does a change in interest rate affect your decision to spend or save? How would a change in the interest rate affect a firm’s decision to invest or save?
- • How might an increase in the wage rate affect what you do with your time?
- • Now describe a tradeoff you’ve made in terms of time or income.
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