Theories of Interest: Top 6 Theories | Money | Economics
The following points highlight the top six theories of interest. The theories are: 1. The Marginal Productivity Theory 2. The Demand-Supply Theory 3. The Abstinence or Waiting Theory 4. The 'Agio' or the 'Time Preference' Theory 5. The Loanable Funds Theory 6. The Liquidity-Preference Theory. 1. The Marginal Productivity Theory: The marginal productivity theory of interest is just an extension [...]