Question

In the loanable funds framework, savers are:
a. the suppliers of loanable funds.
b. the price setter of loanable funds.
c. the demanders of loanable funds.
d. the taxpayers of loanable funds.

Answer 1

In the loanable funds framework, savers are:

**a. the suppliers of loanable funds.**

Savers supply funds that can be borrowed by those who need loans, such as businesses or individuals.