In the loanable funds framework, savers are: a. the price setter of loanable funds. b. the taxpayers of loanable funds. c. the suppliers of loanable funds. d. the demanders of loanable funds.
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The price (interest rate) is determined by the interaction of supply and demand in the loanable funds market. Savers are also not the taxpayers of loanable funds. Taxes are typically paid by borrowers and lenders, not savers. Savers are not the demanders of Show more…
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