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Market Equilibrium
The state in which the supply of an item matches its demand, resulting in a stable price for the item.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage.
Equilibrium Interest Rate
The interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing savings and investment.
Loanable Funds
The funds available for borrowing in the financial markets, influenced by savings, government policies, and financial institutions' lending criteria.
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