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Inter temporal rate of substitution vs. Volatility of GDP growth

How is Inter temporal rate of substitution related to *increased* volatility of GDP growth.  I know that it is negatively related to the GDP growth, but not sure how it is related to *volatility* of the GDP growth.  Would much appreciate it, if someone can explain this in plain English.  

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Anyone?

If there’s less certainty about having more money tomorrow, people will spend more today.

Simplify the complicated side; don't complify the simplicated side.

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so if people are consuming more today, why do we say that with greater volatility, the highter the risk free rate?

Onda wrote:
so if people are consuming more today, why do we say that with greater volatility, the highter the risk free rate?

I don’t know that we do.

What makes you think so?

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/

in the book, it says that GDP growth is positively correlated with real interest rate as well as with the volatility of GDP growth.

Thats what throwing me off