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Time preference is the economist's assumption that a consumer will place a premium on enjoyment nearer in time over more remote enjoyment. A high time preference means a person wants to spend their money now and not save it, whereas a low time preference means a person might want to save their money as well.This is particularly important in microeconomics. The Austrian School sees time as the root of uncertainty within economics.
A high time preference indicates that a person puts a high premium on satisfying wants in the near future.
The time preference theory of interest is an attempt to explain interest through the demand for accelerated satisfaction.
Economics
