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Loanable Funds
The various sources of capital that are available for borrowing, including savings deposits, bonds, and loans, within the financial market.
Interest Rate
An interest rate is the cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal amount annually.
Loanable Funds Market
The market where savers supply funds for loans to borrowers. It's a conceptual framework for understanding the determination of the interest rate.
Equilibrium Interest Rate
The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments in an economy.
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