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In purely theoretical plan it is impossible to deny that this reaction can
To lead to the necessary decrease in norm of percent on money. Is available, however,
Variety of the reasons in aggregate insuperable, why in economy
Type habitual for us the probability of that norm of percent is very high on
Money in many cases will resist to decrease in the necessary sizes.
First of all we should consider effects which renders
Falling of unit of wages on limiting efficiency of other assets
In money terms, as us the difference interests just between
The assumption that it in arises falling of unit of wages
Further again will increase, the result will be quite favorable. If
On the contrary, expectation of the further falling, indicated will be a consequence
Effect on a marginal efficiency of the capital can stop falling
Norms of percent (105).
That fact that wages in the monetary form tends to be
Inactive, and the nominal wages are more stable, than
The real wages, limit ability of unit of wages
(In transfer on money) to fall. Moreover, if it was not so,
Position would appear not better, and is even worse. As if the wage
The payment could be lowered easily it often would generate expectation
The further falling with adverse consequences for the limiting
Efficiency of capital. Furthermore, if wages it was necessary
To establish in any other goods, for example in wheat,
It is improbable, that it continued to remain inactive. In force
Special characteristics of money, in particular what do their liquid,
Thirdly, we approach to the most important reason in the given
Reasoning, namely to those properties of money which satisfy
Liquidity preference. In the certain, often arising circumstances
These properties do norm of percent, especially if it more low
The certain level (107), tolerant even to the significant
To increase in quantity of money in relation to other forms of riches. Others
Words, after some point the income of the money, arising owing to them
Liquidities, does not fall in reply to growth of their quantity in such degree, in
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