What Is the Source of the Supply of Loanable Funds

question 76

Short Answer

What is the source of the supply of loanable funds in the open-economy macroeconomic model?

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Definitions:

Initial Margin

The portion of the purchase price that an investor must deposit when buying securities on margin, serving as a form of collateral.

Initial Investment

The amount of money used to start a business venture, acquire an asset, or invest in a financial product.

Short 100 Shares

The selling of 100 shares that are not currently owned, with the expectation of buying them back at a lower price for a profit.

Initial Margin

The minimum amount of capital required to open a new position in the market, designed as a security for the broker against potential losses.