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A promise to pay a debt must be in writing if:
Loanable Funds Theory
An economic theory that suggests the market interest rate and the quantity of loanable funds are determined by the demand and supply of credit.
Interest Rates
The cost of borrowing money or the return on investments, usually expressed as a percentage.
Present Consumption
refers to the amount of goods and services consumed by individuals or households at the current time, as opposed to saving for future use.
Loanable Funds Curve
A graphical representation of the market for loanable funds, showing the relationship between the real interest rate and the quantity of loanable funds supplied and demanded.
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