“Large changes in the interest rate, which would make an enormous difference to capitalists and determine huge differences in interest income and the profitableness of various lengthy productive processes, would have a negligible effect on the earnings of the owners of the original productive factors. Land is very likely to have no reservation price, i.e., it will have little subjective-use-value to the owner. Labor services are also likely to be inelastic with respect to the interest discount, but probably less so than land, since labor has a reservation demand which stems from the value of leisure as a consumers’ good (i.e., lower prices will increase the relative advantage of leisure).” (pp. 405-406)
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