IN GEOMETRIC TERMS

The reasoning which has just been used is evidentlyexactly like that used in Chapter X, the only importantdifference being that then we had a straight line to dealwith to express what the individual can do while here

CHART 37

The Point of Tangency ( R) of a W Line to the O Line.

we have instead a curved line, or at any rate, a line whichneed not be straight.

And the result of this reasoning so far is also similar.The stopping point is where the can line (in Chapter X,the Market line; here, the Opportunity line) is tangentto the Willingness line.

§4. Individual Adjustment with Loans

Up to this point in the second approximation we havereasoned as though the Individual did not have freedom

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