If the opportunity cost of a unit of current consumption is exactly 1 unit of future consumption then you must sacrifice $10 of current consumption to finance
A)$9 of future consumption.
B)$10 of future consumption.
C)$11 of future consumption.
D)$1 of future consumption.

Question

Quizplus · Accepted Answer

If the opportunity cost of a unit of current consumption is exactly 1 unit of future consumption, it means that for every $1 of current consumption you give up, you can have $1 of future consumption. Therefore, sacrificing $10 of current consumption will give you $10 of future consumption. Hence, the correct option is B.

If the Opportunity Cost of a Unit of Current Consumption