In the loanable funds framework,the ________ curve of bonds is equivalent to the ________ curve of loanable funds.
A)demand;demand
B)demand;supply
C)supply;supply
D)supply;equilibrium

Question

Quizplus · Accepted Answer

In the loanable funds framework, the demand for bonds represents the demand for loanable funds, while the supply of bonds represents the supply of loanable funds. Therefore, the demand curve of bonds is equivalent to the supply curve of loanable funds.

In the Loanable Funds Framework,the ________ Curve of Bonds Is