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If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one.
Loanable Funds
The money available for borrowing in the economy’s financial markets, determined by the saving behavior of entities and the money creation of banks.
Real Interest Rate
The rate of interest an investor expects to receive after allowing for inflation, showing the real cost of funds to the borrower and the real yield to the lender.
Domestic Investment
The total capital expenditure within a country's borders, primarily by residents and businesses, on assets like buildings and equipment.
Domestic Interest Rate
The rate at which interest is paid by a borrower for the use of money that they borrow from a lender within the domestic market.
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