Principles of Microeconomics / Unit 3 MIC 0214 short lesson, about 20 seconds
Savers and Borrowers
Captions available
The idea
In the market for financial capital, savers supply funds and borrowers demand them. Any household, firm or government can be on either side.
In practice
A family saving for retirement supplies; a firm building a plant demands.
Where people slip
Lending your savings is supplying capital, not demanding it. The side is set by which way the money moves now.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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