A firm's demand for physical capital leads to its and a household's supply of saving leads to its .

Question

Quizplus · Accepted Answer

A firm's demand for physical capital will lead to its demand for financial capital (such as loans) to finance the purchase of that capital. On the other hand, a household's supply of saving will lead to the supply of financial capital available for firms to borrow. Therefore, the correct answer is "demand for financial capital; supply of financial capital."

A Firm's Demand for Physical Capital Leads to Its and a Household's