INDEX

Land and artificial capital con-trasted, 459-460; as capital,458-459.

Landry, Adolphe, cited, 73, 471.

Lawrence, J. S., cited, 375.

Laws, relating to interest, 214.

Lender, a buyer, 113.

Lenders, not represented by rich,112; types of, 108-111.

Lending. See Borrowing andlending.

Life expectancy, effect on impa-tience, 84-85.

Loans, change shape of incomestream, 106-112; long, reasonsfor, 363-369; a means of equal-izing impatience rates, 104-106;money, represent income trans-fers, 108; present worth of,equal repayments, 123, 149;productive, present opportu-nities to vary income, 112;public, both consumption andproductive, 369-371; reasonsfor and effects of, 371; relationof, to impatience rate, 231.

Loanable capital. See Capital,loanable.

Loan contract, a sale, 112-113.

Loan interest. See Interest, loan.

Loan market, evolves a commoninterest rate, 98, 99, 104-112.

Luxury, habit of. See Habit.

M

Marginal desirability, determineschoice of income stream, 130ff. ;relation of, to interest, 61-62.

Marginal return over cost, maxi-mum present value, and inter-est rates in formulas, 514-515;shown by geometric method,516; must equal marginal timepreference, 182.

Marginal rate of return over costequal to interest rate, 169.

Marginal time preference mustequal marginal return overcost, 182.

Marginal utility, 62, 62n. SeeMarginal desirability.

Market equilibrium, 255-262, 275-287.

Market line, adjusted to oppor-tunity line, 266 j}.; compared towillingness line, 240-246.

Market principles, cover supplyand demand of incomes, 495;generalized form of, in equa-tions, 296-297; shown by equa-tions, 291-292.

Marshall , Alfred, cited, 252.

Mathematics, use of, in text, ix,231-322.

Mathematical method, applica-tion of, to interest problem,231-262, 263-287, 288-301, 302-315, 316-322; value of in eco-nomics, ix. See also Formulamethod and Geometric method.

Maximum desirability, principleof, 148; influence on interestrate, 118, 122; shown by geo-metric method, 517.

Maximum present value, margi-nal return over cost, interestrate, in formulas, 514-515; bygeometric method, 516; prin-ciple, 175.

Maximum present worth princi-ple, restatement of, 152-155,159.

Menger, Karl, cited, 216.

Michigan , interest rates in, 389.

Mining, type of income streamfrom, 130-139; communities,interest rates in, 387-388.

Misfortune, loans to offset, 356.

Mitchell, Wesley C., cited, 322,439.

Mohlberg, Dr. W., money fluc-tuations and accounting, 44.

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