Time preference theory of interest
From Wikipedia, the free encyclopedia
In economics, the time preference theory of interest is the idea that interest is the price that borrowers put on having money now rather than having money later.
This interest rate may be set by the chance of making profit, the estimated inflation, the preference of owning rather than renting an asset or simply a high time preference with consumption.
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
