Unformatted text preview: value productivity (in terms of future utilities) of capital. This is necessary because in the act of capital formation there is considerable time lapse. Human valuation of present goods or their present consumption opportunity is relatively larger than similar but uncertainopportunities in the future. Therefore future enhanced size of goods must also compensate for such value differences. This compensation is called agio or discounting process ....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10