Examlex
If the return on capital is 12 percent and the price for loanable funds is 14 percent, then
Capital Investment
The purchase of goods or services by a firm to add to its fixed assets to increase its capacity or efficiency in producing goods or services.
Consumption
The use of goods and services by households, one of the major components of an economy’s gross domestic product, indicating economic health and consumer confidence.
Term of a Bond
The length of time until a bond's maturity date, when the principal amount of the bond is due to be paid to the bondholder.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that lenders charge borrowers for the use of their funds.
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