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

Question

Quizplus · Accepted Answer

The supply of loanable funds is determined by the savers and investors in an economy, and it is related to the real interest rate. If the real interest rate is higher, savers will be willing to supply more funds to earn a higher return, increasing the supply of loanable funds. Conversely, if the real interest rate is lower, savers will be less willing to supply funds, decreasing the supply of loanable funds. The other choices, such as the price level, inflation rate, and real GDP, may affect the demand for loanable funds, but they do not directly impact the supply.

The Supply of Loanable Funds Is the Relationship Between Loanable