Examlex
The return on equity measures earnings before interest and taxes.
Loanable Funds Model
An economic model that describes the market where borrowers and lenders interact, determining the equilibrium interest rate and quantity of loanable funds.
Interest Rates
The amount of a loan that is incurred as interest by the borrower, customarily specified as an annual percentage of the loan in question's remaining value.
Invest
Diverting money with the hopes of producing an income or realizing a profit.
Crowding Out
The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or other factors.
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