Asked by Ja'Nayla Watts on Jun 17, 2024
Verified
The term loanable funds refers to all income that is not used for consumption.
Loanable Funds
The funds available within an economy for borrowing, which consist of household savings, business savings, and any government surplus.
Consumption
The process by which goods and services are used up or utilized, reflecting household spending on such goods and services.
- Decode the principle of national saving and its equivalency with investment in an isolated economic system.
Verified Answer
KR
Kathleen Rean HormigosJun 23, 2024
Final Answer :
False
Explanation :
The term loanable funds refers to all the money available for borrowing, which includes savings, but it is not limited to income not used for consumption. It also encompasses funds available from banks and other institutions.
Learning Objectives
- Decode the principle of national saving and its equivalency with investment in an isolated economic system.
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