QuestionJuly 18, 2025

If financial intermediation breaks down, what category of GDP will probably fall the most? net exports investment consumption government purchases

If financial intermediation breaks down, what category of GDP will probably fall the most? net exports investment consumption government purchases
If financial intermediation breaks down, what category of GDP will probably fall the most?
net exports
investment
consumption
government purchases

Solution
4.7(307 votes)

Answer

investment Explanation 1. Identify the Role of Financial Intermediation Financial intermediation primarily facilitates investment by channeling funds from savers to borrowers. 2. Determine Impact on GDP Categories Investment is most directly affected by financial intermediation, as it relies on borrowing and lending activities.

Explanation

1. Identify the Role of Financial Intermediation<br /> Financial intermediation primarily facilitates investment by channeling funds from savers to borrowers.<br /><br />2. Determine Impact on GDP Categories<br /> Investment is most directly affected by financial intermediation, as it relies on borrowing and lending activities.
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