Question: Anthropologists have hypothesized that persons in warm climates value the present more than those who live in cold climates. Suppose that the real rate of interest in equatorial countries is two percent higher that those countries north of the Tropic of Cancer and south of the Tropic of Capricorn. Use your knowledge of human capital theory to explain whether equatorial people are likely to have more or less education that those that live at a more northerly or southerly latitude and the possible consequence of those decisions for economic development.