There are four factors affecting interest rates: Production opportunities; Time preferences for current consumption; Risk; and Inflation. Suppose you decide to spend your bonus from this year to buy a new Porsche sports car, instead of buying Treasury Bonds, because of the low expected return on T-Bonds. Which of the fundamental factors is affecting your decision in the scenario described? (A) Inflation (B) Risk (C) Time preference for current consumption (D) Production opportunities

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