Asked by hannah mazzeo on Apr 24, 2024
Which of the following is not a component of the demand for loanable funds?
A) household purchases of housing and durable consumer goods
B) business purchases of capital goods
C) government financing of the public debt
D) household saving
Loanable Funds
Refers to the funds available for borrowing in the financial markets, determined by the savings of households and organizations.
Public Debt
The total amount of money owed by the government to creditors, often as a result of borrowing to finance public spending.
- Understand the relationship between interest rates, investment decisions, and the demand for loanable funds.
Learning Objectives
- Understand the relationship between interest rates, investment decisions, and the demand for loanable funds.