In the loanable funds market, each dollar borrowed:
a. requires a dollar to be saved.
b. requires the supply of loanable funds to increase.
c. causes inflation.
d. represents a dollar leaving the circular flow.
e. represents a piece of capital.
2. Because businesses are the primary:
a. suppliers of loanable funds, they must lend to government.
b. agents of usury, they must be “reined in” by the people.
c. demanders of loanable funds, they must borrow from the government.
d. demanders of loanable funds, they must borrow from households.
e. suppliers of loanable funds, they must lend to households.