INDEX

R

Rae, John, ix; cited, 3, 81, 199,203, 385; inventions treated by,345; on American Indians, 376;on Indian life, 382; on interestrate in Holland, 374-375; onlack of foresight of Chinese,378; on interest in Rome, 376-377; on theory of distribution,334; uncertainty of life anddemand for present goods, 85;vagaries of fashion, 88.

Railways, improvement of, andinterest rates, 204.

Range of choice, dependent oninterest rate, 170-174.

Rate of growth, average, as re-lated to interest rate, 165.

Rate of interest. See Interest,rate of.

Rate of return over cost. See Re-turn over cost, rate of.

Real income. See Income, real.

Real rate of interest. See Inter-est, real rate of.

Real wages. See Wages, real.

Regard for posterity and impa-tience. See Posterity.

Renewals, repairs and better-ments, option for making, 194-200 .

Rent, interest, profits, wages, notmutually exclusive, 32-34; re-lation of, to interest, 331-332.

Repairs, renewals, betterments,options of making, 194-200.

Return, defined, 157.

Return over cost, 150$.; conceptof, 155-158; determines invest-ment, 157-161; follows law ofdecreasing returns, 160$.; informulas, 513; by geometricmethod, 514; marginal rate of,159-177; more fundamentalthan interest- rate, 499; mustequal or exceed interest rate,

159-165; not the same as in-terest rate, 158; principle of,158-159; relation to investmentopportunity, 155-158.

Return over cost, rate of, appli-cation of, 155$.; balances pres-ent worth of costs and returns,168-169; contrasted with inter-est rate, 499; defined, 155; de-pends on use of capital, 183;described, 155; expresses pro-ductivity side of interest the-ory, 176; interest determining,155-179; shown in charts, 187-188.

Returns (yields), as advantages,154$.

Rich as borrowers, 379.

Risk, absence of assumed, 99-148, 148-205; of death, affectsinterest rate, 216-218; effect of,on accumulation of wealth,336-337; on impatience, 76-80,224-225; on interest rates, 207-227, 381-383; on investmentopportunity, 222-224; on mar-ket principles, 225-226; on in-come stream, 217-218; interestrates on safe loans lowered by,382-383; present in all loans,207-227; of small loans, 213-215; vitiates accuracy of form-ula method for interest, 316-321.

Robinson Crusoe invested labor,received return over cost (in-terest), 180-181.

Romans, interest-taking amongearly, 48.

Rome, interest forbidden inearly, 48; interest rate in, 376-377.

“Roundabout process,” Bohn-Bawerk’s, 471-485.

Rupee bonds, interest rate on,compared with gold bond, 403-407.

[ 564 ]