The Economics of Money and Banking Chapter 4 Interest and Interest Rate D》》 Western Theory of interest 1 D:Exploitation theory Interest Rate Interest comes from surplus value Understanding Interest and Interest presents a form of price for funds Interest is converted into a general form of income Karl Marx (1818-1883) 5 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 5 GUO YING SEM TONGJI UNIVERSITY 1 Western Theory of interest Interest comes from surplus value Interest presents a form of price for funds Interest is converted into a general form of income Chapter 4 Interest and Interest Rate Interest Rate Understanding Interest and Karl Marx (1818-1883) D: Exploitation theory