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The application that at absolutely elastic offer of the credit the monetary

The norm of percent will define, what forms of investments are more profitable, can

To be based on one of two assertions which should be distinguished accurately.

First, it is possible to assert that in this case a parity of costs and the prices

(Or the parity of wages and prices of goods) should be obligatory so It is adjusted by change or wages, or the prices, that a difference

Between them has come to conformity with monetary norm of percent. Secondly, it is possible

To confirm, what even when it does not occur also wages remains, For example, too low concerning prices of goods to regulate the form

Investments all the same there will be a monetary norm of percent, instead of a parity between

Costs and the prices.

Concerning both these arguments, but especially the first, it is important to remember that

Position considered by us at all is not an equilibrium state, but Condition in which factors of continuous and cumulative change are inherent. We really deal with a classical example of cumulative process; Absolutely elastic offer of the credit at norm of percent below the internal

Norms of return of all or the majority of firms will cause continuous changes of the prices

And money incomes where each change does inevitable the further

Changes. There is no sense to say about such situation that "at balance should"

To exist such or such parity, as from the accepted Assumptions inevitably follows that a parity between at least some

The prices should be nonequilibrium. It is especially important at the circulation to two

To positions: first that the prices should be equal to incremental costs and,

Secondly that the prices of production factors should be equal to the expected price

Their limiting product, discounted on norm of percent on which it is possible

Freely to contract the debt. It is enough to tell about the first of them that, for

Exception of particular interest very specific and not representing for us Case [the Assertion can be made true for shortest of all short The periods if to include in incremental costs all costs (including personal

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Free Business Desktop Icons Free Business Desktop Icons is a collection of 10 ready icons to be used in commercial and personal projects, such as software, webpages, blogs, and presentations. The images are free for personal, frequent and commercial use.