Examlex
Which of the following would an economist classify as capital?
Total Output
The complete quantity of goods or services produced by an entity within a specific period.
Loanable Funds
Financial resources available for borrowing, which constitute the supply in the loan markets.
Interest Rate
The percentage charged on the total amount of borrowed money or paid on savings, indicating the cost of borrowing or the reward for saving.
Equilibrium Interest Rate
The equilibrium interest rate is the rate at which the demand for funds equals the supply of funds in the financial markets, balancing savings and investments.
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