According to ------- theory interest arises on account of the productivity of capital.
A)Loanable Fund theory
B)Productivity theory
C)Abstinence theory
D)Classical theory

Question

Quizplus · Accepted Answer

Productivity theory suggests that interest arises due to the productive capabilities of capital. It posits that capital goods are productive, and the interest is the return on the productive use of capital.

According to ------- Theory Interest Arises on Account of the Productivity