Question

If interest rates are greater than zero, presents goods have a greater, less or equal value compared to future goods

Answer 1

Greater value compared to future goods.

1. An interest rate greater than 0 means money will grow as time passes. Should we choose to spend the money on investing rather than buying, we will have more money in the future making the present good more valuable than the good in the future.

2. Suppose a retailer sells a good with 100, then he can invest the money and get more money for it but if it is sold in the future say 1 year, the money that could have been earned in the year is lost.

(The concept is fairly obvious with money but it is also same for goods, to get the present value of a future product we will derive it's value the same way for money, here we are ignoring market fluctuations for the goods that results in it's price change)