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If businesses in general decide that they have overbuilt and so now have too much capital,their response to this would initially shift
Investment-Demand
The desire or willingness to allocate resources towards investment goods that are expected to yield returns in the future.
Interest Rate
The cost of borrowing money or the return for lending money, usually expressed as an annual percentage of the principal.
Effective Usury Laws
Regulations that set maximum interest rates on loans to protect consumers from excessively high costs.
Loanable Funds
The money available for borrowing in the financial markets, often coming from savings and influenced by interest rates.
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