The supply of loanable funds is the relationship between the quantity loanable funds supplied and ________ other things remaining the same.

Question

Quizplus · Accepted Answer

The supply of loanable funds is determined by households, businesses, and governments who are willing to save and lend their money. The real interest rate is the opportunity cost of saving and determines the incentive for lenders to supply loanable funds. Other factors such as real GDP, the price level, inflation rate or nominal interest rate may affect the demand for loanable funds, but not the supply.

The Supply of Loanable Funds Is the Relationship Between the Quantity