Asked by Christian Poncio on Jun 09, 2024
Verified
The financial system coordinates investment and saving, which are important determinants of long-run real GDP.
Investment
The allocation of resources, often money, in the hope of generating an income or profit.
Real GDP
The measure of a country's gross domestic product adjusted for inflation, reflecting the value of all goods and services produced at constant prices.
- Familiarize with the function of the financial system in coordinating investment and saving.
Verified Answer
AH
Armando HernandezJun 10, 2024
Final Answer :
True
Explanation :
The financial system facilitates the transfer of funds from savers to investors, thereby coordinating investment and saving, which are crucial for capital formation and, consequently, for determining the long-run real GDP growth.
Learning Objectives
- Familiarize with the function of the financial system in coordinating investment and saving.
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