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If the expected rates of return on investments increased, the loanable funds theory predicts that the equilibrium interest rate would decrease.
Real GDP
The total value of all goods and services produced by an economy adjusted for inflation, offering a more accurate reflection of an economy's size and growth rate.
Price Level
A gauge of the overall current prices for a broad range of goods and services manufactured in the economy.
Nominal GDP
The market value of all final goods and services produced within a country in a given period, measured in current prices without adjusting for inflation.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate measure of an economy's size and how it's grown over time.
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