Back to Questions
Want to know:
Evaluate the following statement:"Saving money is not lending. How can it be? When I save my money, I put it in a bank. I don't loan it out to someone else."The statement isA.correct. Depositing money in a bank is borrowing, not saving.B.incorrect. The supply of loanable funds is determined by household saving.C.incorrect. The supply of loanable funds is determined by firms' willingness to borrow.D.correct. Depositing money in a bank is neither saving nor borrowing.
Get a detailed, AI-powered explanation for this question and thousands more on StudyFetch.
Get the Answer for FreeHow StudyFetch Helps You Master This Topic
AI-Powered Answers
Get instant, detailed explanations powered by AI that understands your course material.
Deep Understanding
Go beyond surface-level answers with step-by-step breakdowns and examples.
Personalized Learning
Spark.E adapts to your learning style and helps you connect ideas.
Practice & Test
Turn any question into flashcards, quizzes, and practice tests to solidify your knowledge.
Explore More Questions
- If money demand decreases strongly with high interest rates, the LM curve is rather flat.
- A point lying under the IS curve represents excessive demand in the goods market.
- Consider a farmer who grows wheat and sells it to a bakery. The bakery then uses this wheat to bake bread sold to consumers. Which of the following is true?A) Including wheat in the calculation of GDP would be double counting.B) Wheat is a final good.C) Wheat is included in the calculation of GDP.D) Including bread in the calculation of GDP would be double counting.