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Why is it important,for an open economy,that investment not be consistently higher than saving?
Security Market Line
A line that represents the relationship between the expected return of a market security and its risk, as measured by beta.
Market Rate
The market rate, often related to interest or exchange rates, is the prevailing rate determined by supply and demand dynamics in the open market.
Risk-free Rate
The theoretical rate of return on an investment with zero risk of financial loss, often represented by the yield on government securities.
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