Asked by Fazena Jaikaran on Jul 04, 2024
Verified
The supply of loanable funds is perfectly elastic.
Supply of Loanable Funds
The total amount of funds available for borrowing in the economy, determined by savings and influenced by interest rates.
Perfectly Elastic
Describes a situation in demand or supply where quantity changes by an infinite amount in response to any change in price.
- Understand the elements influencing the supply and demand of loanable funds.
Verified Answer
JG
jenna gaberJul 06, 2024
Final Answer :
False
Explanation :
The supply of loanable funds is not perfectly elastic because there are factors that can affect the willingness and ability of lenders to supply funds, such as interest rates, financial regulations, and economic conditions.
Learning Objectives
- Understand the elements influencing the supply and demand of loanable funds.