The market for loanable funds is a market in which:

A. borrowers supply funds to savers, who want loans for their investment spending needs.
B. borrowers buy and sell loans.
C. savers interact to set the interest rate for loans.
D. savers supply funds to those who want to borrow for their investment spending needs.


Answer: D

Economics

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Answer the following statement(s) true (T) or false (F)

1. On average over all goods, it has been found that as people become wealthier, expenditures for higher quality grow more rapidly than expenditures for increased quantity. 2. The cross elasticity between California and Florida oranges is likely to be negative because they are substitutes for one another. 3. If the cross price elasticity of demand is negative, then the two goods under consideration must be complements. 4. If the cross-price elasticity for oranges with respect to apples is 1.2 and the price of apples increase by 5%, then we can expect the quantity demanded of oranges to decrease by 6%.

Economics

If real GDP stays the same but the price level increases:

A. nominal money demand should increase. B. real money demand should decrease. C. nominal money demand should remain the same. D. nominal money demand should decrease.

Economics

Can accounting profit be positive while economic profits are negative?

A. No.  The two concepts are identical. B. No.  Economic profits must always be larger than accounting profits. C. Yes, if total revenue covers opportunity costs but not explicit costs. D. Yes, if total revenue covers explicit costs but not opportunity costs.

Economics

Long-run equilibrium will occur at the price level at which

A) the aggregate demand and long-run aggregate supply curves intersect.
B) the short-run aggregate supply and long-run aggregate supply curves intersect.
C) the long-run aggregate demand and short-run aggregate supply curves intersect.
D) the aggregate demand and short-run aggregate supply curves intersect.

Economics