Economy, asked by nizalansari10, 3 months ago

in the classical theory of interest rate whuch factor determines the interest rate​

Answers

Answered by AadarshBarnwal
0

According to this theory, Interest is the reward for the productive use of the capital which is equal to the marginal productivity of physical capital. Therefore, those economists who hold classical view have said that “the rate of Interest is determined by the supply and demand of capital.

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