Final answer:
Financial timing refers to the decision-making process of when to consume goods or make investments in the financial markets, considering the intertemporal nature of these decisions.
Step-by-step explanation:
Financial timing refers to the decision-making process of when to consume goods or make investments in the financial markets, considering the intertemporal nature of these decisions.
For example, a person may have the choice to either spend their money now (present consumption) or save it for future use (future consumption). Economists study the factors that influence these decisions, such as interest rates, personal preferences, and the trade-off between risk and return.
Ultimately, the financial timing decision depends on individual preferences and goals, and should align with their overall financial plan and objectives.