On the Marginalist Theory of ‘Capital Supply’
5 Pages Posted: 6 Jan 2016
Date Written: February 2016
A familiar theory of how the volume of lending depends on the rate of interest is deficient in at least two respects. First, it treats household income as independent of the rate of interest; second, it supposes the relative prices of consumption commodities to be independent of that rate.
Suggested Citation: Suggested Citation