In this article we will discuss about:- 1. Assumptions of Classical Theory of Interest 2. Supply and Demand for Capital 3. Determination of Rate of Interest 4. Features of Classical Theory 5. Criticisms. The economists like Ricardo, J. S. Mill, Marshall and Pigou developed the, classical theory of interest which is also known as the capital theory of interest or [...]
Read this article in Hindi to learn about the classical theory of interest determination. इस सिद्धान्त का प्रतिपादन मार्शल, वालरस, पीगू, मिल आदि अर्थशास्त्रियों ने किया । इस सिद्धान्त को बचत-विनियोग सिद्धान्त भी कहा जाता है । इस सिद्धान्त के अनुसार ब्याज की दर का निर्धारण पूँजी की माँग एवं पूँजी की पूर्ति द्वारा होता है । इसीलिए इस सिद्धान्त [...]
In this article we will learn about:- 1. Introduction to Interest 2. Stability of Equilibrium 3. Full Employment Equilibrium 4. Critical Evaluation of the Classical Theory. Introduction to Interest: The classical theory of interest rate determination says that people save and let their saving be loaned out to be used as capital for the purpose of investment, i.e., these people [...]