Final answer:
Borrowers are demanders of loanable funds and lenders are suppliers. This reflects the roles of individuals and businesses in financial markets, where those who save or invest are supplying capital, and those who borrow are demanding it. Option C) demanders; suppliers is the correct answer.
Step-by-step explanation:
Borrowers are demanders of loanable funds, and lenders are suppliers of loanable funds. In the context of the financial markets, demanders are those who need capital and thus seek to borrow money. On the other hand, suppliers are those who provide financial capital through savings or making financial investments. Hence, when individuals or businesses save money or make financial investments, they are essentially supplying financial capital to those who need it.
In any financial market, the price (interest rate) is what suppliers receive and what demanders pay. Both households and firms can be suppliers when they save or invest, and demanders when they borrow. Therefore, the correct answer to the question is: Borrowers are demanders of loanable funds, and lenders are suppliers of loanable funds, which corresponds to option C) demanders; suppliers.