The nature of capital and income . it is evident that every tooth in the constituent curves,such as a and a, will be reproduced in the combined dia-gram. In Figure 20, therefore, the ordinates represent thecombined capital-values at various points, while the twoteeth a and a represent the total income accruing in thattime interval which includes them. Thus, Figure 20 epito-mizes the summation both of capital and income. 310 NATURE OF CAPITAL AND INCOME [Chap. XVII But it is not necessary to have three separate is possible to superimpose one of the first two figuresupon the other, a
The nature of capital and income . it is evident that every tooth in the constituent curves,such as a and a, will be reproduced in the combined dia-gram. In Figure 20, therefore, the ordinates represent thecombined capital-values at various points, while the twoteeth a and a represent the total income accruing in thattime interval which includes them. Thus, Figure 20 epito-mizes the summation both of capital and income. 310 NATURE OF CAPITAL AND INCOME [Chap. XVII But it is not necessary to have three separate is possible to superimpose one of the first two figuresupon the other, as shown in Figure 21. In this figure, onthe same axisXF is drawn first FG, corresponding to Fig-ure 18 above, and, secondly, at distances above FG corre-sponding to the ordinates in Figure 19, is drawn the lineMN. This line MN contains an apparent tooth or breakwhich does not appear in Figure 19, but this is only forthe purpose of preserving at this point the prescribed dis-tance from the line FG. Considered relatively to FG there. Fig. 22. is no break. Thus the line MN, measured relatively toFG, takes the place of the constituent curve of Figure 19,and measured relatively to the base line XF it representsthe combined curve of Figure 20 for both constituents. The same method applies where there are any number ofconstituent capital curves. Thus (Fig. 22), let us draw forour first capital curve one which has an income item a,and superimpose upon it a second capital curve, of whichthe income item is a, and so on. The capital curve atthe top will represent the total of the individual capitalcurves beneath it, and each belt between — namely, thedifference between any two neighboring capital curves —will replace a constituent curve. From the manner oftheir construction it is clear that the income item a willbe carried forward successively to each of the curves aboveit, and will be represented by a tooth in the curve at the Sec. 5] SUMMARY OF PART III 311 top, as represented by th
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