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The second variant of the argument according to which "to correct ball" is should by the monetaryNorm of percent.
This variant where admits that wages can remain Concerning low in relation to norm of percent, however affirms that, Despite of it, if the offer of money absolutely elastically, then
The norm of percent, instead of level of the wage will regulate the form of investments
Payments, it is presented basically by works of Kaldora and Wilson Economica, the Trade Cycle ", N.Kaldor, February, T.Wilson, "Capital
Intensity, the Trade Cycle ", 1940, 1939, June, Review of Economic Studies and " Capital
Theory. However
These two authors as we will try to show, hardly simplify the problem and in Result do not prove that intend to demonstrate. From the excessive Carefulness they prove actually only following: while it is possible
To receive on credit unlimited amounts of money on the given norm of percent, only
On this last also will depend, what method will bring the greatest flowing Profit over costs of carry after the equipment will be delivered, In the greatest measure corresponding to this method. It only other variant
The truism noticed right at the beginning and stating that, while norm of percent
Remains invariable, change of real wages cannot change Relative costs of various methods of production. It and Wilson Absolutely ignore that, comparing received from various methods Profit productions, they compare the methods using different volumes
The capital, in any way without calculating cost of creation of the additional real
The capital which is required for one of two these methods. They do it, not In view of that will occur during a transition period to
Installations of the new equipment. Whether there will be in general available this equipment,
Depends, however, that will occur in the given interval. The answer
On this question it is impossible to consider the assertion that if we accept the defined
Rate of actions, excess of current receipts over the operational expenditure
Will be the greatest since certain date in the future and further after it, if
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