Causes existence of positive interest rate

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Reference no: EM13770076

In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?

Reference no: EM13770076

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Causes existence of positive interest rate : In standard macro model, it is usually time preference that causes positive interest rate. But is there anything to do with risk aversion of utility function that causes existence of positive interest rate?

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