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Figure 15-1
-Refer to Figure 15-1. The demand curve of dollars represents
I. U.S. purchases of imported goods and services.
II. payments to U.S. owners of foreign assets.
III. demand for U.S. Treasury bonds by U.S. residents.
IV. foreigners' purchases of U.S. assets.
Equilibrium Quantity
The quantity of goods or services supplied that is exactly equal to the quantity demanded at the market's equilibrium price.
Social Insurance
Programs designed to provide protection against economic risks (such as unemployment, disability, or old age) largely based on contributions that reflect a person's earnings.
Loanable Funds
The pool of money available for borrowing in the financial markets, governed by interest rates, which balance the supply of savers and the demand by borrowers.
Interest Rate
The percentage of a loan subject to interest fees for the borrower, often shown as an annual portion of the outstanding loan balance.
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