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With Respect to Personal Financial Planning, the First Thing to Do

question 135

True/False

With respect to personal financial planning, the first thing to do with any extra money you have is to start a savings plan.


Definitions:

Productivity of Capital Goods

The effectiveness with which capital goods, such as machinery and equipment, produce goods or services.

Loanable Funds

The money available for borrowing in the financial market, originating from people or entities who save some part of their income.

Equilibrium Interest Rate

The equilibrium interest rate is the interest rate at which the quantity of money demanded equals the quantity of money supplied, balancing savings and investments in the economy.

Equilibrium Interest Rate

The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied.

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