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Opportunity costs of waiting

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As the interest rate decreases, the opportunity cost of waiting to receive a future amount

© BrainMass Inc. brainmass.com September 19, 2018, 7:47 am ad1c9bdddf - https://brainmass.com/economics/production-function/opportunity-costs-of-waiting-586369

Solution Preview

Answer: INCREASE

As the interest rate decreases, the opportunity cost of waiting to receive a future amount INCREASES.

Example:

Let ...

Solution Summary

The solution discusses what happens as the interest rate decreases and the opportunity cost of waiting to receive a future amount.

$2.19