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As a visitor to England, you as an American, have difficulty remembering to drive on the left side of the road as they do and to look in the opposite way before crossing the street. This illustrates
Loanable Funds
The funds available for borrowing in the financial markets, determined by the savings of households and institutions.
Interest Rates
The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal amount annually.
Future Returns
The potential financial gains or profits that may be received from an investment in the future.
Business Investments
The allocation of resources by businesses into projects or assets with the expectation of generating future profits.
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