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In the loanable funds market the demand for funds comes from: • financial institutions who lend funds to people. the governme
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The correct option is C) firms who want to borrow to pay for new capital.

The market for loanable funds describes how that borrowing happens. The supply of loanable funds is based on savings. The demand for loanable funds is based on borrowing. The interaction between the supply of savings and the demand for loans determines the real interest rate and how much is loaned out.

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