What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions? Question content area bottom Part 1 What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions?(Select the best answer below.) A.What does it mean when we say that individuals as a group are net suppliers of funds for financial institutions?(Select the best answer below.)

A.

Individuals, as a whole, spend more than they make. The excess is provided for by businesses.

B.

Individuals, as a whole, spend less than they make. The amount that they spend is made available to businesses through financial institutions.

C.

Individuals, as a whole, spend less than they make. The excess is invested, making it available for businesses and governments.

D.

Individuals, as a whole, spend more than they make. The excess is provided for by financial institutions.

Part 2

What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply of funds available to financial institutions?(Select the best answers from the drop-down menus.)

If individuals consume more,

dollars will be available for investment. This would

the amount of money available for new projects and drive

up

down

the required return (i.e., required return of investors to buy bonds). Over time, employment, salaries, and gross domestic product would

rise

decline

.