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Real Interest Rates
The interest rate adjusted for inflation, reflecting the real cost of borrowing and the real yield to lenders or investors.
Crowding Out
The phenomenon where increased government spending leads to a reduction in private sector spending or investment, often due to higher interest rates.
Domestic Investment
Domestic investment refers to the total spending on capital within a country that is used for the production of goods and services.
Loanable Funds
The money available for borrowing in the financial markets, determined by savings and demands for loans.
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