The Loanable Funds Market
AP Macroeconomics · Flashcards
AP MACROECONOMICS · FLASHCARDS
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QUESTION
Define 'crowding out' in the context of the Loanable Funds Market.
QUESTION
What is the result of a decrease in the reserve requirement on loanable funds supply?
QUESTION
What is an example of a financial intermediary in this market?
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ANSWER
Banks are financial intermediaries. They collect deposits from savers and lend to borrowers.
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