Four fundamental factors affect the supply of, and demand for, investment capital, hence the (-Select- amount - cost - desirability ) of money. These factors are: production opportunities, time preferences for consumption, risk, and inflation. If the entire population was living at the subsistence level, time preferences for current consumption would be (-Select- high - low), savings would be (-Select- high - low), interest rates would be (-Select- high - low), and capital formation would be (-Select- easy - difficult). Producers' expected returns on their business investments set a(n) (-Select- lower- upper) limit on how much they can pay for savings, while consumers' time preferences for consumption establish how much consumption they are willing to delay, and, consequently, how much they will (-Select- spend- save) at different interest rates. In addition, (-Select- lower- higher) risk and -Select-lowerhigherltem 9 inflation lead to higher interest rates