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Market Clearing |
Also found in: Wikipedia | 0.02 sec. |
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Market clearing Total demand for loans by borrowers equals total supply of loans from lenders. The market, any market, clears at the equilibrium rate of interest or price. Market Clearing A situation in which the demand for loans equals the supply of loans. That is, borrowers want to borrow the same amount of money that lenders are willing to lend. During a market clearing, the equilibrium rate of interest prevails, which ideally means that the cost of borrowing is neither excessively high nor low. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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