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The variance is the square of the standard deviation.
Loanable Funds Curve
A graphical representation that shows the relationship between the interest rate and the quantity of loanable funds supplied and demanded.
Interest Rate
The cost incurred by a borrower, calculated as a percentage of the principal, for borrowing assets from a lender.
Loanable Funds
The money available in the financial system for lending to individuals and businesses, depending on the savings rate and monetary policies.
Equilibrium Interest Rate
The interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing the savings and the demands for loans.
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