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Under the general decision rule for relaxing a constraint, managers are willing to pay:
Relative Prices
The price of a good or service compared to the price of another, indicating the trade-off between choosing one over the other.
Demand for Loanable Funds
The desire for borrowing money that exists among individuals, businesses, and governments in an economy, usually influenced by interest rates.
Interest Rate
The cost, in terms of a percentage of the principal, levied by a lender on a borrower for asset usage.
Supply of Loanable Funds
The supply of loanable funds is the total amount of capital available for borrowers to secure, typically originating from savings in the economy, and forming the basis for interest rates determination.
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