Principles of Political Economy · John Stuart Mill
INTEREST.
231. How does the general rate of interest determine the selling price of stocks and land? 232. Is there any relation between the rate of interest and the value of money? 233. What are the relations of interest and profit? On what causes does the rate of interest depend? 234. “High interest means bad security.” Comment on this saying. 235. Is the rate of interest affected by the supply of the precious metals? 236. What determines the rate of interest on the loanable funds? Is the “current [or ordinary] rate of interest the measure of the relative abundance or scarcity of capital”? 237. What are the chief causes that determine the rate of interest? 238. If it be true that in America every man, however rich, is engaged in some business, but that in England many rich men have no trade or profession, how is the rate of interest in each country affected in consequence, and why? 239. How does a fall in the purchasing power of money tend to affect, if at all, and why, (1) the rate of interest, (2) the price of land, (3) the price of government bonds, (4) the price of gold and silver ornaments and plate?
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