Intertemporal decisions involve economic decisions
A) made within a given period of time.
B) made in between two periods of time.
C) involving tradeoffs across periods of time.
D) that ignore concerns about the future.
E) that are made only once.

Question

Quizplus · Accepted Answer

Intertemporal decisions involve tradeoffs between different time periods. This means that individuals or firms have to consider the costs and benefits of a decision not only in the present but also in the future. This requires an assessment of future consequences and uncertainty about future events. Examples of intertemporal decisions include decisions about saving, investment, borrowing, and consumption.

Intertemporal Decisions Involve Economic Decisions