Production opportunities? and risk? and inflation

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Reference no: EM13880931

What factors affect the cost of money? Use at least one outside source. You may form your own opinions as well but support them with research. I need examples to understand the four factors please. The four factors that affect the cost of money are: 1. Production Opportunities - the returns available within an economy from investment in productive (cash producing) assets. 2. Time Preferences for Consumption - the preferences of consumers for current consumption as opposed to saving for future consumption. 3. Risk - the chance that a financial asset will not earn the return promised. 4. Inflation - the tendency of prices to increase over time.

Reference no: EM13880931

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