Indicate whether each of the following statements is true or false.
Definitions:
Interest Rate
The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal amount per year.
Discounting
The process of determining the present value of future cash flows by applying a discount rate to reflect time value of money and risk.
Equilibrium Interest Rate
The interest rate at which the quantity of loanable funds demanded equals the quantity of loanable funds supplied.
Domestic Output
The total value of all goods and services produced within a country's boundaries over a specific time period.
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