INDEX

trasted with the author’s, 519.

Interest, theory of, applies to allloans, 356-371; fundamental indistribution, 326-340; funda-mental in price theory, 325$.;a part of price theory, 61, 68;in personal loans, 356-359.

Intermediate services. See Inter-actions.

Invention, effect of, on impa-tience, 341-342; on incomestreams, 341-343; on interestrates, 342-347; on capital value,343-345; on dividends, 352-353;on interest rate, 502-503; finaleffect of, lowers interest rate,345-347; first effect of, raisesinterest rate, 343-345; impor-tance of, to progress, 354-355.

Investing, buying future incomes,113-115; compared with spend-ing, 113-115; a form of spend-ing, 114; spending deferred, 9;and spending, the problem ofinterest, 29-30.

Investment opportunity, conceptof, agrees with current usage,158; contrasted with loan, 498;definition of, 151, 154, 498; ef-fects of, on interest, shown byequations, 302-315; eligible andineligible options, 151; for allsociety, 500-503; and impa-tience, 280-282; individual, ad-justed to impatience and inter-est, 272-275; may fix interestrate, 185-194; meaning of,178$.; means substituting oneincome stream for another,158; nature of, 497-499; objec-tive element in interest, 62,181-182; (option) shown by aline, 264$.; the productivityelement, 182; relation of, toimpatience, 176-177; to an op-tion, 151; to productivity ofcapital, 150$.; substituted for

productivity, ix; trading withenvironment, 181.

Investment opportunities, intro-duce a new variable in interestproblem, 143-149.

Investment opportunity princi-ples, 286; income streams dif-fering in size and time shape,135-149; maximum presentworth, 148; summarized, 175.

Ireland, interest rates in, 380.

J

Java, interest rates in, 375.

Japan, interest rates and pricesin, 525, 530.

Jews, characteristics of, affect in-terest rates, 374, 376-377.

K

Karsten, Mr. and Mrs. K. G.,cited, 443n.

Kemmerer, E. W., cited, 381.

King, W. I. , on distribution, 334.

Korea, interest rates in, 382.

L

Labor, not same as discountedvalue of its product, 179; op-tions to use, 200-202.

Laborer today does no waiting,180.

Laborers, by waiting becomecapitalists, 48-52; wages of,and interest rates, 328-330.

Labor cost, 16-16, 178-179. Seealso Labor pain.

Labor pain, 15-16, 22-25, 178-179,191-192; difficult to measure,24; and enjoyment incomeonly uncancelled items, 20-21;involves no interest, 326$.

Labor saving, as cost, 486-487.

[ 560 ]