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Open-Economy Macroeconomic Model
A model that analyzes an economy that engages in international exchange of goods, services, and capital.
Loanable Funds
The market where savers supply funds for loans to borrowers, typically reflected by interest rates.
Real Interest Rate
The interest rate adjusted for inflation, reflecting the real cost of borrowing and the true return on savings.
Equilibrium Quantity
The quantity supplied and the quantity demanded at the equilibrium price.
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