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Describe the various hardware components and provide examples.
Tax-Deferred Savings
Investment accounts that offer tax benefits, deferring taxes on earnings until funds are withdrawn.
Loanable Funds
The market where savers supply funds to borrowers, often facilitated by financial institutions, influencing interest rates through supply and demand.
Interest Rate
The proportion of interest a borrower is charged for borrowing money from a lender.
Investment Spending
Expenditures made by entities (individuals, companies, or governments) on capital goods, including buildings, machinery, and technology, to increase productivity.
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