time-preference theory of interest

noun

A theory stating that interest arises when present goods are exchanged for future goods because people prefer present goods over future ones.

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Meanings

noun
  1. businessA theory stating that interest arises when present goods are exchanged for future goods because people prefer present goods over future ones.
Cite this entry
APA

time-preference theory of interest. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/time-preference%20theory%20of%20interest

MLA

“time-preference theory of interest.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/time-preference%20theory%20of%20interest. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “time-preference theory of interest,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/time-preference%20theory%20of%20interest.

Source: time-preference theory of interest on Wiktionary, CC BY-SA 4.0.