Which of the Following Is Not a Source of Loanable

question 122

Multiple Choice

Which of the following is not a source of loanable funds?

• A) the saving of households
• B) business saving
• C) commercial bank lending
• D) government budget deficits

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Definitions:

Price Level

The average of the current prices of goods and services in the economy, often compared over time to assess inflation.

Equilibrium GDP

The level of real GDP at which aggregate supply equals aggregate demand, resulting in a stable economy without tendencies to change.

Recession

A fleeting period of economic diminution, involving a dip in trade and industry work, usually defined by a decrease in GDP over two following quarters.

Foreign Purchases Effect

The impact on a country’s balance of trade when its currency appreciates or depreciates, influencing the price of imports and exports.