The opportunity cost of current consumption is ________.

Question

Quizplus · Accepted Answer

The opportunity cost of current consumption refers to the cost of forgoing current consumption in order to save or invest for future consumption. The real interest rate is the rate at which people can borrow or save money, representing the cost of capital. Therefore, the real interest rate is the best choice. The other options are irrelevant as they do not pertain to the concept of opportunity cost.

The Opportunity Cost of Current Consumption Is ________