July 2023
Beginner to intermediate
224 pages
5h 8m
English
Content preview from Explaining Money & Banking
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You probably won’t ever hear noneconomists speak of time preference, but you do hear people talk about interest rates; they are intimately related. Time preference refers to a person’s willingness to consume goods now or later, and we often rely on interest rates to indicate or measure time preference. This preference explains how people address tradeoffs associated with the passage of time. It also provides a simple way to evaluate a variety of financial assets and entrepreneurial projects. So, if you want to choose between different time-dependent investment opportunities, understanding interest can help you make better, more profitable decisions.
Do you like having some stuff now rather than lots of stuff later? Or ...
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