Enunciados de questões e informações de concursos

Therefore, if one focuses on choices in resource management – for example between various levels of water use or between nutrient cycling and mining – it becomes impossible to miss the powerful resource-depleting incentive created by higher real interest rates. Costly credit undoubtedly shifts the composition – of inputs, outputs, techniques, investments, consumption, and savings, - sharply in a resource-depleting direction. It is only the effect of costly credit on degradation via investment levels that remains in doubt.

 

According to the text, higher real rates of interest have a powerful resource-depleting influence because they

 

Item 0 - raise the cost of credit;



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