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Complex models are always better than simple ones.
Social Insurance
Programs designed to provide protection against economic risks (such as unemployment, disability, or old age) largely based on contributions that reflect a person's earnings.
Loanable Funds
The pool of money available for borrowing in the financial markets, governed by interest rates, which balance the supply of savers and the demand by borrowers.
Interest Rate
The percentage of a loan subject to interest fees for the borrower, often shown as an annual portion of the outstanding loan balance.
Bank Lending
The process by which banks offer loan products to customers, thereby generating profits from the interest charged.
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