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"When There Is a Shortage of Loanable Funds, the Real

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Essay

"When there is a shortage of loanable funds, the real interest rate will increase." Explain whether the previous statement is correct or not.


Definitions:

Net Profit Margin

Net profit margin is a financial ratio that shows what percentage of a company's revenues remain as net income after all expenses are deducted.

Earnings Per Share

A financial ratio that measures the portion of a company’s profit allocated to each outstanding share of common stock, indicating company profitability.

Time Management

Making effective use of available time.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the desired goals.

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