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# Frugal and Industrious Borrowers

## Definition

Economic actors who borrow capital with the intention of employing it productively to generate returns that exceed the cost of borrowing. They represent the economically beneficial use of credit in Smith's analysis.

## Source Chapter

Book II, Chapter 4

## Context

Smith argues that these borrowers far outnumber prodigals and that lending to them is economically beneficial for both parties. This concept helps establish the general economic benefit of interest-bearing loans when employed productively.

## Economic Domain

Accumulation

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