Asked by Brisa Sanchez on May 07, 2024
Verified
Which statement is true?
A) The supply of loanable funds is less elastic than the supply of land.
B) The supply of loanable funds is more elastic than the supply of land.
C) The supply of loanable funds is as elastic as the supply of land.
Supply of Loanable Funds
The total amount of funds that lenders are willing to loan at a given interest rate in an economy.
Elastic
Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to changes in its price.
- Recognize the influencers on the availability and need for land.
Verified Answer
CS
Courtney SiscoMay 10, 2024
Final Answer :
B
Explanation :
The supply of loanable funds is influenced by various factors such as interest rates, savings behavior, and investment opportunities, which makes it more elastic compared to the supply of land, which is limited in quantity and not easily influenced by price changes.
Learning Objectives
- Recognize the influencers on the availability and need for land.