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While Demands Are Why a Person Wants Something, Interests Are

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While demands are why a person wants something, interests are what the person wants.


Definitions:

Price Level

An index that measures the average of prices of goods and services in an economy, often used to evaluate inflation or deflation.

Money Demand Curve

A graphical representation showing the relationship between the quantity of money people want to hold and the interest rate, under the assumption all other factors remain constant.

Opportunity Cost

The consequence of losing possible gains from various options when one preference is made.

Interest Rate

The cost of borrowing money or the return for investing money, usually expressed as a percentage per annum.

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