Which of the Following Is Included in the Demand for Loanable

question 93

Multiple Choice

Which of the following is included in the demand for loanable funds?

• A)investment and government borrowing
• B)investment but not government borrowing
• C)government borrowing but not investment
• D)neither government borrowing nor investment

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Definitions:

Individual Security

A financial instrument (such as a stock or bond) representing an individual's ownership or creditor relationship with a corporation or governmental entity.

Market Risk Premium

The excess return that investors require for choosing a risky investment over a risk-free investment.

Risk-averse

Referring to the preference of minimizing exposure to risk and avoiding situations that could lead to loss.

World Events

Significant occurrences and developments worldwide that can impact global markets, politics, and societies.