Loanable Funds Market- 04/4/17

Loanable Funds Market- 04/4/17

Loanable Funds Market:
- Private sector supply and demand for loans
- Brings together savers and borrowers
- Shoes effect on Real interest Rate

Demand:
-inverse relationship between real interest rate and quantity of loans demanded
Supply:
-Direct relationship between real interest rate and quantity of loans supplied
-NOT SAME AS MONEY MARKET