A key variable in intertemporal choice is
A)investment.
B)real interest rate.
C)total factor productivity.
D)output per worker.
E)consumption.

Question

Quizplus · Accepted Answer

Intertemporal choice involves making decisions about how to allocate resources over time, taking into account the tradeoffs between present and future consumption. The real interest rate is a key variable in these decisions, as it measures the return on investment and influences the opportunity cost of consuming now versus saving and investing for the future. The higher the real interest rate, the greater the incentive to delay consumption and invest in productive assets that can provide a higher return over time.

A Key Variable in Intertemporal Choice Is