Manual of References And Exercises in Economics for Use With volume 1. Economic Principles

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Would it have borrowed if the rate of interest had been 7 per cent or 8 per cent? If it had been 4 per cent or 3 per cent ?
32 MANUAL OF REFERENCES CHAPTER 25 CAPITALIZATION AND INTEREST References.
Fetter, F. A., Interest theories, old and new. 4: 68-92. Capitaliza- tion vs. productivity: rejoinder. A. T. Rev., 4: 856-859. 1914.
(For those interested in the more theoretical aspects.) Fisher, Irving, The rate of interest. 1907.
Iladley, Economics, sees. 155-158 (on usury laws).
Materials, 773-7
...82.
Readings, Bullock, 563-568, for historical changes in the rates of interest.
Walker, F. A., Political Economy, 330-340 (on usury laws).
Questions.
1. Which is the more important for the rate of interest, the amount of money in the banks or the amount of goods in the country?
2. If the loanable funds, including money, in a community suddenly .
and markedly increase, how will the interest rates on call loans and long time investments respectively be affected?
3. In a panic, interest rises on short loans and prices fall, while it is almost impossible to borrow money ; does this show that the amount of money determines the interest rate?


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