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In the real business cycle model, the quantity of money
Interest
The price paid for the opportunity to use borrowed finances, generally expressed through an annual percentage.
Simple Interest
Interest calculated only on the principal amount, or on that part of the principal amount which remains unpaid.
Principal
The principal refers to the initial amount of money lent or invested, excluding any interest or growth.
Annual Rate
The interest rate for a period of one year, often used as a benchmark for savings or loan interest calculations.
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