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Asked by Total Sport Productions on May 03, 2024

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The demand for loanable funds comes from saving and the supply of loanable funds comes from investment.

Loanable Funds

A term used in economics to describe the market where savers supply funds to borrowers, typically characterized by the interest rate.

Saving

The act of setting aside a portion of current income for future use, which could involve depositing money into bank accounts or investing in financial products.

Investment

Assigning funds with the anticipation of creating income or achieving financial gain.

  • Evaluate the repercussions of fiscal policy on the pool of loanable funds, borrowing costs, and investment initiatives.
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TC
Tamara CollinsMay 07, 2024
Final Answer :
False
Explanation :
The demand for loanable funds comes from investment, as businesses and individuals seek to borrow money to invest in various projects, while the supply of loanable funds comes from saving, as households and entities save their excess income in banks or other financial instruments, making these funds available for lending.

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