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Look at the tech sector where Moore's law assures that prices on computers are always dropping. I don't think I know anybody who owns a computer - everybody is
by gravitycop 18y ago
Look at the tech sector where Moore's law assures that prices on computers are always dropping. I don't think I know anybody who owns a computer - everybody is waiting for them to get cheaper before buying.
If economic actors anticipated future prices increases, they would be more inclined to buy in the present. Economic actors do make purchases despite anticipating price declines. One reason for that is time value, also known as future discounting. A computer available in the present is considered more valuable than a computer available in the future.