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Loanable Funds
The market where savers supply funds to borrowers, influencing interest rates and investment activities.
Crowding Out
A situation in economics where increased public sector spending reduces or eliminates private sector spending.
Budget Deficit
A budget deficit occurs when a government's expenditures exceed its revenues within a specified period, leading to a need for borrowing to finance the shortfall.
Interest Rates
The cost of borrowing money, expressed as a percentage of the amount borrowed.
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