Macro: Unit 4.7 -- The Loanable Funds Market

Hey Everyone! I'm Mr. Willis, and You Will Love Economics!

In this video, I will:
Clearly identify what loanable funds are and how they are created through fractional
reserve banking
Define the demand for loanable funds
Explain the factors that contribute to the inverse relationship between the real interest
rate and quantity of loanable funds demanded
Identify the 4 determinants of loanable funds demand
Define the supply of loanable funds
Explain the positive relationship between the real interest rate and quantity of loanable
funds supplied
Identify the 4 determinants of loanable funds supply
Use graphs to analyze how a change in loanable funds demand will impact the real
interest rate
Use graphs to analyze how a change in loanable funds supply will impact the real
interest rate


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