Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions? What do you think the

image text in transcribed

What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? wa uvestmeal wren we say ular Vuais as a group are ner supplers or Tunus Tor marcar institutions? (Select the best answer below.) O A. Individuals, as a whole, spend more than they make. The excess is provided for by businesses. O B. Individuals, as a whole, spend less than they make. The amount that they spend is made available to businesses through financial institutions. OC. Individuals, as a whole, spend less than they make. The excess is invested, making it available for businesses and governments. OD. Individuals, as a whole, spend more than they make. The excess is provided for by financial institutions What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? (Select the best answers from the drop-down menus.) If individuals consume more. dollars will be available for investment. This would the amount of money available for new projects and drive the required return (.e., required return of investors to buy bonds). Over time, employment salaries, and gross domestic product would What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? wa uvestmeal wren we say ular Vuais as a group are ner supplers or Tunus Tor marcar institutions? (Select the best answer below.) O A. Individuals, as a whole, spend more than they make. The excess is provided for by businesses. O B. Individuals, as a whole, spend less than they make. The amount that they spend is made available to businesses through financial institutions. OC. Individuals, as a whole, spend less than they make. The excess is invested, making it available for businesses and governments. OD. Individuals, as a whole, spend more than they make. The excess is provided for by financial institutions What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? (Select the best answers from the drop-down menus.) If individuals consume more. dollars will be available for investment. This would the amount of money available for new projects and drive the required return (.e., required return of investors to buy bonds). Over time, employment salaries, and gross domestic product would

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantum Economics And Finance

Authors: David Orrell

3rd Edition

1916081630, 978-1916081635

More Books

Students also viewed these Finance questions

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

2. Define the grand narrative.

Answered: 1 week ago