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A production possibility frontier that is a straight line sloping down from left to right suggests that:
Loanable Funds
The supply of money available for borrowing in the financial market, determined by savings and demand for borrowing.
Loanable Funds
The money available for borrowing, the supply of which is influenced by savings and demand for investment.
Real Interest Rate
The interest rate adjusted for inflation, representing the real cost of borrowing or the real yield on savings.
Real Exchange Rate
The rate at which the goods and services of one country can be exchanged for those of another, adjusted for inflation, reflecting the purchasing power of its currency internationally.
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