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Business, 23.10.2019 17:00 graciemonceret6213

The concept of the loanable funds market is similar to that of the grocery store-goods are sold and money is borrowed to pay for them. the market by which lenders (savers) and borrowers exchange funds for earlier availability at a premium, which is represented by the interest rate. similar to the notion of consumer and producer surplus, where the interest rate represents either consumer or producer surplus, depending on who is doing the borrowing, the market by which borrowers (suppliers) and lenders (demanders) exchange funds for earlier availability at a premium, which is represented by the interest rate. that the interest rate is determined by multiplying the risk premium by the coefficient of pure interest

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