IN GEOMETRIC TERMS

lines, one (M x ) showing by its divergence from the 45°slope the rate which Individual 1 can get, as a borrower,and the other ( W x ) showing by its slope the rate at whichhe is urilling to borrow. Evidently if he is willing to pay30 per cent for a $100 loan when he can get it at 10 per

This leap's Inccme

CHART 28

Intersection of Mi Line and Wi Line at Pi .

cent, he will borrow. Evidently also he will continue toborrow as long as his willingness rate, i.e., his rate oftime preference or impatience, is greater than the rate ofinterest, in other words as long as, at each stage, theWillingness line is steeper than the Market line.

All that has been done so far is to describe the incomemap, and to place on it a point P x to represent the as-

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