Wednesday, February 17, 2016

What is the relationship between the real interest rate, the supply of loanable funds and the demand for loanable funds?



What is the relationship between the real interest rate, the supply of loanable funds and the demand for loanable funds?

#Parkin #11edition #Finance #Saving #Investment #Chapter24

1 comment:

  1. Answer: The supply of loanable funds has a positive relationship between the real interest rate and the quantity of loanable funds supplied. In a figure, a supply of loanable funds curve has a positive slope. Similarly, the demand for loanable funds is the relationship between the real interest rate and the amount of loanable funds demanded. In a figure, a demand for loanable funds curve has a negative slope.

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