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Interest Rates Will Decline When the Demand for Loanable Funds

question 11

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Interest rates will decline when the demand for loanable funds


Definitions:

Endergonic Reaction

A nonspontaneous reaction; a reaction requiring a net input of free energy. Compare with exergonic reaction.

Exergonic Reaction

A reaction characterized by a release of free energy. Also called spontaneous reaction. Compare with endergonic reaction.

Free Energy

The amount of internal energy within a system that is available to perform work, as in chemical reactions and physical processes.

Absorbs

The process of taking in or soaking up energy or material from the environment, such as light, heat, or moisture, through physical or chemical means.

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