In the market for loanable funds, the supply comes from

Question

Quizplus · Accepted Answer

The supply of loanable funds comes from savings, the government budget surplus, and international borrowing. People save money and deposit it in banks, which then lend it out to borrowers. The government can also contribute to the supply of loanable funds through a budget surplus, meaning that it spends less than it collects in taxes. Finally, countries can borrow from international investors or lending institutions, adding to the supply of loanable funds.

In the Market for Loanable Funds, the Supply Comes from