Theories of Interest:
Some of the theories of interest are as follows:
1. The Abstinence or Waiting Theory of Interest; 2. The Agio Theory and Time Preference Theory;3. The Marginal Productivity Theory; 4. Saving and Investment Theory (i.e., The classical theory) 5. Loanable Funds Theory and 6. The Liquidity Preference TheoryAccording to the Abstinence theory of Nassau Senior, interest is the prize for abstaining from instant consumption of wealth. Whenever people save, they abstain from current consumption. That includes some sacrifice. To make them save, interest is provided as a reward. However Marshall favored the word, “waiting” to “absitinence”.
The “Agio” theory of interest of Bohm-Bawerk states that as the present carries a premium (i.e., agio) over the future, and as people prefer present to future consumption, we have to pay a price for them by way of compensation; and that is interest. The time preference theory of Irving Fisher is more or less similar as Agio theory of interest. The marginal productivity theory of distribution is nothing however the application of the marginal productivity theory of distribution. It states that interest tends to equivalent the marginal productivity of capital. The classical theory of interest states that the rate of interest is determined by the supply of capital that depends upon savings and the demand for capital for investment. The theory depends on the supposition that there is a direct relationship among the rate of interest, savings and direct relationship among interest and investment. The classical economists believed that savings would augment whenever the interest rates were high, and investment would rise with a fall in interest rate. And the equilibrium among saving and investment was brought around by the rate of interest.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Marginal Productivity help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Marginal Productivity, project ideas and tutorials. We provide email based Marginal Productivity help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Marginal Productivity. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics Homework help and assignment help services. They use their experience, as they have solved thousands of Economics assignments, which may help you to solve your complex issues of Marginal Productivity. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Chemical Groupings of Polymers with Nomenclature tutorial all along with the key concepts of Addition polymers, Condensation polymers, Cross-linked polymers, Based on the stereochemistry
Ratios can be collected into categories, with each category relating to a specific aspect of financial performance or position.
Theory and lecture notes of Parabolic PDEs-Explicit Method all along with the key concepts of differential equations, Boundary Conditions, Explicit Method Finite Differences, Heat Flow and Diffusion. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Parabolic PDEs-Explicit Method.
tutorsglobe.com termination of polypeptide chain assignment help-homework help by online protein translation tutors
the discovery of vcrs made it simple to rent or purchase movies and watch them at home, but tvs just did not compare to movie theatres’ giant screens and surround-sound systems.
www.tutorsglobe.com offers Collaboration Diagram homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
Quantum-Mechanical Model of the Atom tutorial all along with the key concepts of The Planck-Einstein Relation, Wave-particle duality, The uncertainty principle, The Schrödinger equation, Quantum numbers, The Pauli Exclusion Principle, The aufbau principle
tutorsglobe.com difference between prokaryotes and eukaryotes assignment help-homework help by online prokaryotic and eukaryotic cell tutors
tutorsglobe.com nitrogen cycle assignment help-homework help by online nitrogen metabolism tutors
Low Temperature and Third Law of Thermodynamics tutorial all along with the key concepts of Liquefaction of Gases, Maintenance of Low Temperature, Superconductivity in Metals, Nernst Heat Theorem, Third Law of Thermodynamics, Applications of Superfluidity
Friction tutorial all along with the key concepts of Laws of Friction, Coefficient of Friction, Coefficient of Friction Formula, Nature of Friction, Coefficients of static and kinetic friction, Frictional Coefficient
It is apparent that chromosomes are the movers of genetic material. Chromosomes consists proteins, DNA and RNA.
tutorsglobe.com time periods and price fixation assignment help-homework help by online equilibrium price tutors
simple harmonic motion i tutorial all along with the key concepts of relating s.h.m. with circular motion, acceleration, period, velocity, displacement, phase difference of quarter, mass of oscillating system
tutorsglobe.com implications of welfare theorems assignment help-homework help by online welfare tutors
1955256
Questions Asked
3689
Tutors
1458358
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!