| Question |
Answer |
| Crowding-Out Effect |
A phrase pertaining to the government's willingness to pay more for borrowed funds than the private sector. |
| Demand For Loanable Funds |
A widely used phrase in financial markets pertaining to the borrowing activities of households, businesses, and governments. |
| Equilibrium Interest Rate |
The interest rate that equals the aggregate demand for loanable funds with the aggregate supply of loanable funds. |
| Fisher Effect |
The relationship between interest rates and expected inflation. |
| Interest-Inelasticity |
Insensitivity to interest rates. |
| Loanable Funds Theory |
A theory suggesting that the market interest rate is determined by the factors that control supply and demand for loanable funds. |
| Nominal Interest Rate |
The quoted rate of interest. |
| Real Interest Rate |
The difference between the nominal interest rate and the expected inflation rate. |