IN GEOMETRIC TERMS

If the rate of interest were zero, each $100 borrowedwould require only $100 to be returned next year. Theriser would equal the tread; the Market line would makean angle of 45° with the axis, and its slope would equal

This leap's Incase

CHART 26

Successive Changes in an Individual’s Income Position Produced bySuccessive Borrowings at the Market Rate of Interest.

unity, or, in other words, 100 per cent. Thus in this newmethod of charting, a given rate of interest is representedby the algebraic difference between the slope of the givenMarket line, and the 100 per cent slope of the 45° zerointerest line.

Mi", Mi ", etc., would be a hundred times as numerous and corre-spondingly smaller.

[ 237 ]