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In: Economics

For this discussion highlight how relevant are intertemporal choices as they pertain to prices (interest rates),...

For this discussion highlight how relevant are intertemporal choices as they pertain to prices (interest rates), postponing consumption (patience), credit availability, income shocks, and individuals’ foresight for your company/industry.

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Expert Solution

*Answer:

Intertemporal choices are nothing but the choices that are made by the consumption basket in different time periods. Payroll is nothing but the total amount of money that a company pays to its employees.

Example - Consider Telcom Services in India , Jio the largest telcom operating services owned by Mukesh Amtbani and the choices of people are tilted towards this network and it is reported that Jio has been offering numerous jobs to employees just because of the intemporal choices and it even forecasted that still more payroll can happen due to its expansion to mobiles even.

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