22 lines
710 B
Markdown
22 lines
710 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-04 -->
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# Rate of Interest
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## Definition
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The price paid for the use of borrowed capital, typically expressed as a percentage of the principal per year. This rate is determined by the balance between the supply of lendable capital and the demand for its use in productive enterprises.
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## Source Chapter
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Book II, Chapter 4
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## Context
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Smith provides a comprehensive analysis of how interest rates are determined, arguing that they naturally fall as the quantity of capital in a country increases and profitable employment opportunities become scarcer.
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## Economic Domain
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Distribution
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---
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