Households' supply of financial capital is derived from

Question

Quizplus · Accepted Answer

Households' supply of financial capital comes from their supply of saving, which includes their disposable income that is not spent on consumption. Human capital refers to the skills, knowledge, and abilities that individuals possess and is not a source of financial capital. Physical capital is typically owned by firms and is a factor of production, not a source of financial capital. Firms' demand for physical or financial capital does not impact households' supply of financial capital.

Households' Supply of Financial Capital Is Derived from