The classical theory of interest is that it is the price that equates the supply of capital to the demand for it. For greater precision one should substitute for‘capital’ above the term‘capital disposal’, retaining the word‘capital’ to describe physical objects in which inputs have been embodied with a view to future outputs, as already explained.


Interest Rate Marginal Utility Money Supply Natural Rate Market Rate 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Roy Harrod 1973

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  • Roy Harrod

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