Asked by hannah mazzeo on Apr 24, 2024

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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.
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MA
Muhammad alfayed5 days ago
Final Answer :
D
Explanation :
Household saving is not a component of the demand for loanable funds; rather, it is a source of the supply of loanable funds. The demand for loanable funds is driven by borrowing for investment, consumption, and government spending, not by saving.