Asked by Total Sport Productions on May 03, 2024
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The demand for loanable funds comes from saving and the supply of loanable funds comes from investment.
Loanable Funds
A term used in economics to describe the market where savers supply funds to borrowers, typically characterized by the interest rate.
Saving
The act of setting aside a portion of current income for future use, which could involve depositing money into bank accounts or investing in financial products.
Investment
Assigning funds with the anticipation of creating income or achieving financial gain.
- Evaluate the repercussions of fiscal policy on the pool of loanable funds, borrowing costs, and investment initiatives.
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Learning Objectives
- Evaluate the repercussions of fiscal policy on the pool of loanable funds, borrowing costs, and investment initiatives.
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