Examlex
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Loanable Funds
The money available for borrowing in the financial markets, determined by the savings of individuals and institutions and the willingness to lend.
Interest Rate
The percentage at which interest is charged or paid on a sum of money over a period of time.
Loanable Funds
This refers to the total amount of funds available for borrowing in the financial markets, determined by the saving rate and investment demands.
Equilibrium Interest Rate
The rate of interest where the quantity of money sought equals the amount available, equilibrating investment and savings across the economy.
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