Asked by Patricia Czupryna on May 28, 2024
Verified
The demand curve for loanable funds represents the behavior of
A) lenders.
B) savers.
C) borrowers.
D) bankers.
Loanable Funds
The market where savers supply funds for loans to borrowers.
Borrowers
Individuals or entities that take funds from a lender with the intention of paying back the borrowed amount plus interest.
- Decode the effects of variations in interest rates on the behavior patterns of borrowers and lenders in the trading scene.
Verified Answer
BH
Bilal HussainMay 31, 2024
Final Answer :
C
Explanation :
The demand curve for loanable funds represents the behavior of borrowers, who demand funds for investments, consumption, or other purposes. The curve shows the relationship between the interest rate and the amount of loanable funds demanded, with a higher interest rate typically leading to a lower quantity of funds demanded.
Learning Objectives
- Decode the effects of variations in interest rates on the behavior patterns of borrowers and lenders in the trading scene.