What did Fisher's intertemporal choice theory lead to?
Theory of capital
Theory of labor
Theory of trade
Theory of taxation
Answer
Theory of capital emerged from Fisher's intertemporal choice theory, which analyzed individuals' decisions to consume or save over time. Fisher's work demonstrated that the optimal allocation of resources between present and future consumption depends on the interplay between interest rates, time preferences, and the productivity of capital. This led to the development of models that explain how capital accumulation, investment, and economic growth are influenced by these factors.
Irving Fisher Trivia: 31 Questions to Test Your Memory
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