Financial Sector & Loanable Funds
All 10 Financial Sector & Loanable Funds terms in the AP Economics glossary — each with a clear, exam-accurate definition. Tap any term for the full explanation, formula, and related interactive graph.
The inverse relationship between bond prices and market interest rates.
The relationship between the nominal interest rate, real interest rate, and expected inflation.
The market where savers supply funds and borrowers demand funds for investment, determining the real interest rate.
The long-run Phillips curve is vertical at the natural rate of unemployment, showing no permanent trade-off between inflation and unemployment.
The stated interest rate on a loan or investment without adjusting for inflation.
The Phillips curve shows the short-run inverse relationship between the inflation rate and the unemployment rate.
The portion of disposable income that households and businesses do not spend on consumption.
The nominal interest rate adjusted for inflation, reflecting the true cost of borrowing or return to saving.
A curve showing the inverse relationship between inflation and unemployment in the short run.
The investment demand curve shows the inverse relationship between the real interest rate and the quantity of investment spending firms want to undertake.