Ep. 273 The Austrian Theory of Interest, Current and Future
Bob Murphy Show
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The Marginal Product of Capital
Bumbavarik: Modern economic students may dismiss it because standard workhorse models seem to show quite clearly that in equilibrium, the real rate of interest equals the quote marginal product of capital. He says if we're assuming that capital markets are competitive, then that means different producers who have the production function at their disposal, they have to pay the capitalists,. The marginal product to get their investment. All right. So there he's, that's an economic concept. That's not a math thing.
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