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Legislators often believe an internal service fund function will not be subjected to annual legislative budget review and the legislature will "lose control" of the fund. Do you agree with this line of reasoning? Why or why not?
Real Rate
The interest rate adjusted for inflation, reflecting the actual purchasing power of interest earnings.
Real Rate
The interest rate adjusted for inflation, reflecting the true cost of borrowing or the real yield on an investment.
Inflation
A rise in the general level of prices in an economy; an increase in an economy’s price level.
Equilibrium Interest Rate
The interest rate at which the demand for funds equals the supply of funds in the financial markets.
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