Figure 25-1 
-Refer to Figure 25-1.In order for the figure to make sense,do we have to assume that capital is the only determinant of output? Briefly explain.
Definitions:
Present Value
The current value of a future sum of money or stream of cash flows given a specified rate of return.
Loanable Funds
The funds available within an economy for borrowing, influencing interest rates and capital availability.
Interest Rate
Fees assessed by a lending party on a borrowing party for asset usage, expressed in terms of the principal's percentage.
Rule of 70
A rule that estimates the number of years required to double an investment or population at a fixed annual growth rate, by dividing 70 by the percentage growth rate.
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