Asked by Victor Nwakaihe on May 06, 2024
Verified
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 market where savers supply funds for loans to borrowers.
Durable Consumer Goods
Products that are not consumed or destroyed in use and are able to provide utility over time, such as appliances, cars, or furniture.
- Pinpoint the inception and deployment of loanable resources in the economic framework.
Verified Answer
EJ
EDGAR J RIVERA-RIVERAMay 09, 2024
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. Demand for loanable funds is generated by borrowers who need funds for investments, spending, or financing, not by savers who supply the funds.
Learning Objectives
- Pinpoint the inception and deployment of loanable resources in the economic framework.