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Explain the Difference Between Efficiency and Equity

question 149

Essay

Explain the difference between efficiency and equity.Which of the two is naturally promoted by market forces (under ideal conditions)?


Definitions:

Price Of Corn

The cost at which corn is sold, typically influenced by factors such as supply, demand, and market conditions.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Variable-Rate Loan

A loan where the interest rate can change, based on an underlying benchmark or index that reflects the cost to the lender of borrowing on the credit markets.

Increases In Interest Rates

A scenario where central banks or financial institutions decide to raise the cost of borrowing money.

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