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Loanable Funds
Money available for borrowing, which comes from savings that consumers and businesses put into the financial system.
Real Interest Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.
Nominal Interest Rates
are the stated interest rates on financial products or loans, not adjusted for inflation, indicating the actual rate of interest charged by lenders.
Real Interest Rates
The interest rate adjusted for inflation, reflecting the real cost of borrowing and the true return on savings.
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