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Interest Rate
The charge for borrowing money or the return for investing money, often expressed as a percentage of the amount lent, borrowed, or invested.
Time-value
The concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.
Real Capital
Physical assets like machinery, buildings, and infrastructure that are used in the production of goods and services.
Equilibrium Interest Rate
The interest rate at which the demand for money balances exactly equals the supply of money in circulation, leading to economic equilibrium.
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