Simultaneously buying this quantity’s namesake caps and floors is known as this quantity’s so-called “collar” strategy. Indices for this quantity are often the underlying for a forward rate agreement. The TED spread measures the difference between two forms of this quantity. A London-based index for this quantity that was discontinued in June 2023 following its namesake scandal in 2012 was named Libor. In one model, output increases as this quantity decreases along the (*) investment-saving curve. Two forms of this quantity are related to the rate of inflation in the Fisher equation, where the real form of this quantity approximately equals the nominal form minus inflation rate. Decreasing this quantity close to zero results in the liquidity trap. For 10 points, identify this quantity, the so-called cost of borrowing money. ■END■
ANSWER: interest rates [accept real interest rates; accept nominal interest rates]
<CT, Social Science>
= Average correct buzz position