Market clearing

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Measurement error

Errors in measuring an explanatory variable in a regression, which leads to biases in estimated parameters.

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