The Notion of the Loanable Funds Market Is

question 110

Multiple Choice

The notion of the loanable funds market is:

• A) the method by which consumers get payday loans and auto-title loans.
• B) the method by which savers (typically households and individuals) supply funds to borrowers (typically firms).
• C) the method by which savers (typically firms) supply funds to borrowers (typically the government).
• D) the method by which borrowers are exploited by loan sharks.
• E) the method by which the government lends money to big corporations.

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Definitions:

Utility

In economics, utility means the total satisfaction received from consuming a good or service.

Competitive Equilibrium

is a condition in a market where supply equals demand, with prices becoming stable at this point.

Capital Input

The resources used in the production process, including buildings, machinery, and equipment.

Labor Input

The total hours of work or number of workers employed in the production of goods and services.